Piper Jaffray Downgrades VeriFone (PAY) to Neutral
- Wall St. rises amid robust GDP data, mixed earnings
- ExxonMobil (XOM) Tops Q3 EPS by 5c; CapEx Light of Views
- Baker Hughes (BHI), General Electric (GE) in Partnership Talks, Not Merger Talks
- AbbVie (ABBV) Tops Q3 EPS by 1c; Boosts FY16 EPS Outlook
- Amazon.com (AMZN) Misses Q3 EPS by 26c, Offers Q4 Guidance
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
Piper Jaffray downgraded VeriFone (NYSE: PAY) from Overweight to Neutral with a price target of $19.00 (from $27.00).
Analyst Jason Deleeuw commented, "PAY significantly cut FY ’16 guidance and now expects revenue to decline 3% in FY ’17 due to 1) a slowdown in U.S. EMV upgrades from SMB merchants and 2) macro/ political headwinds in Latin America & Turkey. PAY reported U.S. SMB merchants having less urgency to upgrade their POS terminals for EMV following the new chargeback moratorium rules. Also, there continues to be a back-up of POS terminal upgrades as merchant processors and some large merchants deal with the complexity of EMV. We downgrade PAY from OW to Neutral as we no longer expect a meaningful recovery in North America and do not see a return to total company growth until beyond FY ’17, which we believe will limit valuation multiple expansion potential. Our PT moves from $27 to $19."
The firm cut FY 2016 EPS from $1.85 to $1.65 and FY 2017 EPS from $2.24 to $1.55.
Shares of VeriFone closed at $20.10 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Leerink Partners Downgrades McKesson (MCK) to Market Perform
- FBR Capital Cuts Price Target on Government Properties Income Trust (GOV) to $25
- Oppenheimer Raises Price Target on Cirrus Logic, Inc. (CRUS); Reiterates Outperform
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change, Downgrades
Related EntitiesPiper Jaffray
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!