VeriFone (PAY) Stock Set to Rise 35% - Barron's
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Shares of VeriFone Systems (NYSE: PAY) are lower by 21 percent year-to-date and at just $29 per share are significantly off recent highs near $55. However, the stock of the POS payment systems provider could be set to rocket higher by 35 percent, in the view of Barron's.
In a weekend article discussing the future of cash, Barron's pointed out concerns investors have about VeriFone's prospects. Namely, investors are concerned about the emergence of digital wallet services like Square. While change certainly creates uncertainly, the situation at VeriFone is not "dire". In fact, a number of formally cash-only industries, including taxis, are just beginning to make the switch to plastic.
Additionally, many of Square's merchants are small and new to electronic payments.
"Eventually, these merchants will need more-sophisticated equipment. That's where VeriFone enters the picture," says Barron’s.
VeriFone will also benefit as merchants upgrade their systems to comply with new security protocols, noted the report.
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In a weekend article discussing the future of cash, Barron's pointed out concerns investors have about VeriFone's prospects. Namely, investors are concerned about the emergence of digital wallet services like Square. While change certainly creates uncertainly, the situation at VeriFone is not "dire". In fact, a number of formally cash-only industries, including taxis, are just beginning to make the switch to plastic.
Additionally, many of Square's merchants are small and new to electronic payments.
"Eventually, these merchants will need more-sophisticated equipment. That's where VeriFone enters the picture," says Barron’s.
VeriFone will also benefit as merchants upgrade their systems to comply with new security protocols, noted the report.
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