Shares of Global Payments (GPN) plummeted 5.02% in Monday's intraday trading session following a series of analyst downgrades and price target cuts. The stock's sharp decline comes amid growing concerns over the company's planned acquisition of Worldpay and its potential impact on Global Payments' operational complexity and financial leverage.

TD Cowen led the downgrades by cutting its rating on Global Payments to Hold from Buy and slashing its price target to $78 from $110. The firm expressed reservations about the Worldpay deal, stating that it "adds complexity, leverage & increased execution risk that runs counter to needed simplification." Analysts at TD Cowen warned that the acquisition could undermine Global Payments' efforts to streamline operations and improve financial transparency.

Other major financial institutions followed suit, with Jefferies also downgrading Global Payments to Hold from Buy and reducing its price target to $75 from $100. KBW similarly lowered its rating to Market Perform from Outperform and cut its price target to $78 from $135. The wave of downgrades reflects growing skepticism among Wall Street analysts about the strategic rationale and potential benefits of the Worldpay acquisition.

Key concerns raised by analysts include the challenges of integrating Worldpay with Global Payments' existing Merchant Solutions unit, the potential for increased operational fatigue, and the risk of merchant attrition. Additionally, the deal is expected to increase Global Payments' net leverage to 3.5x post-acquisition, reversing recent progress made in debt reduction efforts. The limited free cash flow generation at Worldpay and delayed revenue synergies have also tempered expectations for short-term financial improvements.