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Stock impact report

Shift4 Payments: Growing, Undervalued, Oversold, And Ripe For A Short Squeeze [Seeking Alpha]

Shift4 Payments, Inc. Class A (FOUR) 
Company Research Source: Seeking Alpha
While revenue growth has slowed to 23.1% YoY, operating margins improved by 410 bps to 9.1%, signaling a clear shift toward profitability. Short interest is sitting at nearly 20%; there is potential for a short squeeze. The approved buyback program represents 17.9% of the market cap. Main risks are discretionary spending exposure and intense competition. I see 35% upside according to a residual earnings model. I also discuss five relative valuation models that indicate between 27% and 115% upside. Maskot/DigitalVision via Getty Images Thesis I rate Shift4 Payments, Inc. ( FOUR ) as a Buy with a word of caution about the high volatility of the 'leisure industry'. In short, if a recession occurs, Shift4's sales will be more sensitive than those of This article was written by Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the Show less Read more
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