Global Payments' (GPN) improved buyback capacity, constructive channel checks on the Genius platform and the Worldpay business, low bar for execution, and rising investor interest create a meaningful rerating potential, Morgan Stanley said in a Monday research note.

Stock buybacks can be a source of considerable EPS upside, while the company's valuation also appears fundamentally "too cheap," analysts wrote.

While management execution, Worldpay integration, and Middle East tensions pose near-term risks, these concerns are well understood and largely priced into the company's current valuation, according to the note.

Worldpay's eCommerce exposure looks favorable as it adds a structurally more attractive growth engine to the company's entire portfolio, Morgan Stanley said. The firm said it now expects 2027 adjusted EPS of $16.30, up from $15.82 earlier.

The brokerage said it upgraded the stock to overweight from equal-weight and boosted its price target to $100 per share from $65.

Price: 79.17, Change: +1.35, Percent Change: +1.73