Higher One (ONE) PT, Estimates Trimmed at Piper Jaffray; 'Overweight' Maintained

Piper Jaffray analyst Michael Grondahl trimmed his price target on Higher One (NYSE: ONE) to $6.00 (from $6.50) but maintained an Overweight rating following Q4 results.

Grondahl commented, "ONE reported 4Q14 revenue of $57.1M vs. PJC at $57.3M. Overall revenue growth was approximately 0.8% Y/Y as gains in payment and Campus Labs revenue were offset by declines in OneAccounts. Payment transaction revenue was up 13.7% Y/ Y, and OneAccount revenue remained under pressure decreasing 5.2% Y/Y on lower OneAccounts at 2.135 million (-2.6% Y/Y). Adjusted EPS of $0.14 was in line with PJC at $0.14. Gross margins and adj. EBITDA margins were 55.3% and 25.8%, down from 55.3% and 28.2% Y/Y, respectively. ONE generated $7.6M of FCF during the quarter and had $40.0M of cash at December 31, 2014. Lastly, ONE revised its credit facility in February which was a clear positive, but operationally 2015 remains a challenge for OneAccounts. ONE guided 2015 revenues and EPS to $205M-$215M and $0.40-$0.45, respectively. We reiterate our Overweight rating but decrease our PT to $6.00 from $6.50."

The firm moves FY 2015 EPS from $0.45 to $0.42 and FY 2016 EPS from $0.41 to $0.42.

For an analyst ratings summary and ratings history on Higher One click here. For more ratings news on Higher One click here.

Shares of Higher One closed at $3.41 yesterday.

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