Things could be looking particularly favorable for First Data in the not-too-distant future, according to reports that emerged over the weekend.
Shares in the payments processing firm could be set to rise as much as 70 percent if current performance trends carry forward. That would be an important — and likely welcome — change of pace for the First Data team. Shares in the firm have fallen off 30 percent since First Data’s IPO in 2015.
Recovering that price is job number one of Chief Executive Officer Frank Bisignano, and First Data has pursed that goal with improved technology, paid-down debt and a deferment by creditors on $5 billion in debt payments that were to be payable in 2018 (now 2021). The firm also has high hopes for Clover, its SMB-facing payments software.
As of today (May 23), First Data’s shares are trading for $11, which is about eight times estimated 2016 earnings, less than half the level of some competitors.