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Global Payments gets an upgrade at Guggenheim after TSYS deal announcement

Emily Bary

Guggenheim analyst Jeff Cantwell upgraded shares of Global Payments Inc. to buy from neutral on Thursday, following the company's announcement from earlier in the week that it would be acquiring Total System Services Inc. in an all-stock deal. "The bottom line is we believe this deal is a smart strategic decision by Global Payments," he wrote. "We've long had the view that TSYS' Issuer business is best-in-class, and we also have had a highly positive view of TSYS' Merchant Solutions business." Cantwell said that the deal could give the combined company a greater footprint in verticals like specialty retail. Global Payments shares are up 0.8% in Thursday morning trading, and they've gained 44% so far this year as the S&P 500 has risen 11%.