Core Insights - The financial sector shows potential buying opportunities in oversold stocks, particularly those with a Relative Strength Index (RSI) below 30, indicating undervaluation [1][2] Company Summaries - **Shift4 Payments Inc (NYSE:FOUR)**: - Analyst Peter Heckmann from DA Davidson maintains a Buy rating but lowers the price target from $124 to $114 - The stock has decreased approximately 14% in the last five days, reaching a 52-week low of $66.11 - Current RSI value is 27.1, with shares closing at $66.31 after a 5.3% drop [3][8] - **Burford Capital Limited (NYSE:BUR)**: - Scheduled to release financial results for the three and nine months ended September 30, 2025, on November 5 - The stock has fallen around 21% over the past month, with a 52-week low of $9.38 - Current RSI value is 24.8, with shares closing at $9.44 after a 6.2% decline [4][8] - **Fiserv Inc (NYSE:FI)**: - Reported weaker-than-expected third-quarter results and reduced FY2025 adjusted EPS guidance - The stock has plummeted approximately 48% in the last five days, reaching a 52-week low of $64.52 - Current RSI value is 12.5, with shares closing at $65.19 after a 7.7% drop [5][8]

Core Viewpoint - Wells Fargo and other firms have initiated coverage on various companies in the payments and technology sectors, highlighting both challenges and opportunities within these industries [1] Group 1: Payments Sector - Wells Fargo initiated coverage of PayPal (PYPL) with an Equal Weight rating and a price target of $74, noting the sector's struggles due to a shift towards AI-centric stocks and execution issues among companies [1] - Coverage was also initiated for Shift4 (FOUR) and Fiserv (FI) with Equal Weight ratings, indicating a cautious outlook on these companies [1] - Block (XYZ) received an Overweight rating and a price target of $91, with Wells Fargo identifying attractive opportunities despite the sector being challenging for investors [1] - Other companies in the payments sector, including Global Payments (GPN), FIS (FIS), Visa (V), MasterCard (MA), Affirm (AFRM), and Circle Internet (CRCL), were also given Overweight ratings [1] Group 2: Advertising and E-commerce - Deutsche Bank initiated coverage of AppLovin (APP) with a Buy rating and a price target of $705, emphasizing its strong advertising technology and expansion into e-commerce advertising, which is significantly larger than mobile game in-app advertising [1] Group 3: Renewable Energy - Needham initiated coverage of First Solar (FSLR) with a Buy rating and a price target of $286, viewing it as a leading option for investing in U.S. utility-scale solar due to favorable policies [1] Group 4: Technology and Infrastructure - Piper Sandler initiated coverage of Dell Technologies (DELL) with an Overweight rating and a price target of $172, predicting it will benefit from a strong enterprise data center refresh in 2026 and AI infrastructure developments [1] - HP Enterprise (HPE) was also covered by Piper Sandler but received a Neutral rating, indicating a less favorable outlook compared to Dell [1]

Core Viewpoint - Shift4 (NYSE: FOUR) is entering exclusive negotiations to acquire Bambora North America, which includes Bambora Inc, Bambora Holding Corp, Bambora Corp, and Worldline SMB US, Inc, with the transaction expected to close in Q1 2026, pending customary approvals [1] Company Summary - Shift4 is a leader in integrated payments and commerce technology [1] - Bambora North America serves over 140,000 clients [1] Transaction Details - The acquisition involves multiple subsidiaries of Worldline (Euronext: WLN) [1] - The expected closing date for the transaction is in the first quarter of 2026 [1]

Core Viewpoint - Shift4 Payments, Inc. (NYSE:FOUR) is recognized as one of the best fintech stocks to buy, despite a recent price target reduction by Raymond James from $126 to $120 while maintaining a Strong Buy rating ahead of Q3 2025 results [1] Group 1: Price Target and Revenue Estimates - Raymond James lowered its price target for Shift4 Payments due to anticipated weakness in Global Blue, which the company acquired in July, leading to a 1.5% reduction in Q3 revenue estimates [2] - Adjusted EBITDA estimates were also reduced by approximately 2.0% as a result of the same weakness [2] - For fiscal years 2026 and 2027, revenue and EBITDA forecasts for Global Blue were decreased by 2-3% [3] Group 2: Business Performance and Growth Outlook - Despite the challenges with Global Blue, Shift4 Payments' core business is performing as expected, and Raymond James remains optimistic about the company's long-term growth potential [4] - The firm highlights potential revenue synergies from Dynamic Currency Conversion (DCC) and cross-selling opportunities to Global Blue merchants as key growth drivers [4] - Shift4 Payments is positioned as a financial technology company providing integrated payments and commerce solutions [4]

Core Points - Shift4 Payments Chairman Jared Isaacman and former President Donald Trump met to discuss the revival of Isaacman's nomination as NASA administrator [2] Company Summary - The White House previously withdrew Isaacman's nomination to lead NASA [2]

Market Overview - Mid cap growth equities experienced modest gains in Q3, with the Russell Midcap Growth Index returning 2.8%, lagging behind the Russell Midcap Value Index at 6.2% and the Russell Midcap Index at 5.3% [3] - The U.S. Federal Reserve's rate cut in September contributed to easing monetary policy, benefiting rate-sensitive sectors and renewing interest in cyclical and innovation-led areas [3] Investor Sentiment - Investor sentiment improved due to the passage of the One Big Beautiful Bill and progress on trade agreements, reducing policy uncertainty and enabling companies to execute delayed strategic decisions [4] - Earnings estimates stabilized, particularly in technology and AI-related sectors, despite ongoing challenges in non-residential construction and discretionary segments [4] Portfolio Performance - The ClearBridge Mid Cap Growth Strategy outperformed its benchmark in Q3, driven by stock selection in IT, consumer staples, and healthcare sectors, while consumer discretionary and financials sectors slightly detracted from performance [5] Sector Contributions - In the IT sector, AppLovin (APP) and Monolithic Power Systems (MPWR) were standout performers, with AppLovin benefiting from strong earnings and optimism around its e-commerce business [6] - Consumer staples saw positive contributions from Performance Food Group (PFGC) and Casey's General Stores (CASY), both benefiting from strong operational performance [7] - The consumer discretionary sector faced challenges, particularly with Chipotle Mexican Grill (CMG) and Wingstop (WING) experiencing declines due to competitive pressures and softer spending trends [8] - Financials sector was a modest drag on performance, with Tradeweb Markets (TW) and Corpay facing challenges from macro volatility and company-specific issues [9] Portfolio Positioning - New positions were initiated in Roblox, benefiting from improved growth dynamics and advertising opportunities, and APi Group, which is well-positioned in safety and industrial services [10][11] - Exited position in Deckers Outdoor (DECK) due to increasing competitive pressures in the sneaker market [12] Outlook - Leadership within mid growth stocks remains selective, with a few companies rewarded for differentiated technology and strong pipelines, while others struggle with demand and competition [13] - Focus remains on identifying businesses with secular growth drivers across technology, healthcare, and industrials sectors [14] - Near-term market uncertainty is expected to persist, but the strategy is positioned to benefit from companies sustaining durable growth in earnings and cash flow [15] Portfolio Highlights - The ClearBridge Mid Cap Growth Strategy had positive contributions across seven of the 11 sectors, with IT and healthcare being the leading contributors [16] - Stock selection in IT, consumer staples, healthcare, and energy sectors contributed positively, while consumer discretionary and financials sectors weighed on performance [17] - Individual stock contributions included AppLovin, United Rentals (URI), and Performance Food, while detractors included Chipotle Mexican Grill and Tradeweb Markets [18]

Group 1 - Shift4 Payments, Inc. is positioned as a software-led commerce platform with a market cap of $7.5 billion and is growing at approximately 30% annually [2] - The company aims to achieve around $1 billion in free cash flow by 2027, supported by operating leverage and a high-return-on-invested-capital model [2] - The stock is currently mispriced as investors view it as a hyper-competitive vertical payments processor, overlooking its unique value proposition [3][5] Group 2 - Shift4 processes payments for about one-third of U.S. sit-down restaurants, 40% of hotels, and nearly three-quarters of professional sports stadiums, highlighting its critical infrastructure role [4] - The company operates both front-end software for merchants and back-end payment processing, ensuring multiple monetization points across the value chain [4] - There is a strong alignment with the founder, who remains actively involved and has been purchasing shares in the open market [2][5] Group 3 - Investors may not fully recognize Shift4's evolution into a global commerce platform, which presents an attractive investment opportunity with significant rerating potential [5] - The stock price has depreciated approximately 2.8% since previous bullish coverage, but the underlying thesis remains valid, focusing on embedded infrastructure and free cash flow trajectory [6]

Core Viewpoint - Shift4 Payments, Inc. has declared a cash dividend of $1.50 per share for its 6% Series A Mandatory Convertible Preferred Stock, which will be paid on November 3, 2025 [1] Company Summary - The dividend is applicable to the 10,000,000 shares of 6% Series A Mandatory Convertible Preferred Stock issued on May 5, 2025 [1] - The record date for the dividend payment is set for October 15, 2025 [1]

Core Insights - Shift4 Payments, Inc. (NYSE: FOUR) is a fintech company focused on providing merchant services to restaurants, hotels, and discretionary leisure sectors [1] - The company's stock does not reflect a guaranteed growth outlook despite existing consumer risks [1] Company Overview - Shift4 Payments specializes in merchant services tailored for the hospitality and leisure industries [1] - The company operates in a sector that is sensitive to consumer spending patterns, which can introduce volatility [1] Investment Perspective - The analysis is based on value investing principles, emphasizing an owner's mindset and a long-term investment horizon [1] - The author does not engage in short-selling or provide sell recommendations, indicating a bullish outlook on the stock [1]

Company Overview - Shift4 Payments (NYSE: FOUR) is a fintech company that specializes in merchant services for restaurants, hotels, and other discretionary leisure sectors [1] Market Position - Despite evident consumer risks, Shift4 Payments does not trade as if growth is guaranteed, indicating a potential undervaluation in the market [1] Investment Perspective - The analysis is based on value investing principles, emphasizing an owner's mindset and a long-term investment horizon [1]