Compass Point analyst John Williams on Aug. 4 downgraded Global Payments Inc.'s stock rating to "neutral" from "buy," largely on valuation.

Global Payments had reported second-quarter net income attributable to the company of $66.9 million, up from the prior-year period's $62.2 million. It also announced a $1.2 billion deal for the communities and sports divisions of ACTIVE Network.

Commenting on Global Payments' "aggressive acquisition strategy," the analyst wrote: "It is clear management intends to continue down the same path, though we wonder how much additional capacity [Global Payments] has to both do deals and successfully integrate them."

Compass Point had upgraded the stock to "buy" on Nov. 15, 2016, when the share weakness "was vastly overdone," the analyst wrote. It had closed at $66.57 the prior trading day.

On Aug. 4, the stock closed at $97.72. Williams' price target for the stock remains at $96.