Shift4 Payments' (FOUR) weaker-than-expected Q2 results and unchanged outlook, despite prior confident messaging, sparked "investor frustration," Morgan Stanley said in a note Wednesday.

Analysts at Morgan Stanley noted that while investors were "looking for a healthy beat + raise across the board" heading into the earnings report, the company's "[Q2] volume miss and ~in-line Adj. Ebitda vs. consensus, with minimal FY25 outlook revision when excluding Global Blue is resulting in investors recalibrating both FY25 and medium-term growth expectations."

Global Blue, acquired earlier this year, is expected to contribute $300 million in revenue and $125 million in earnings before interest, taxes, depreciation and amortization, though no synergies are currently factored into 2025 projections.

Concerns also grew over potential delays in international expansion and recent moderation in travel, which could affect Global Blue's results in H2, Morgan Stanley said.

The investment firm noted that 2025 targets remain achievable but stressed the need for more consistent execution, particularly in realizing synergies from recent acquisitions and cross-selling Global Blue's client base, according to the note.

Morgan Stanley maintained an equal-weight rating and lowered its price target to $92 from $100.

Shares of the company were down nearly 3% in recent Wednesday trading.

Price: 83.87, Change: -2.57, Percent Change: -2.97