Compass Point Starts Vantiv (VNTV) at Neutral

Compass Point initiates coverage on Vantiv (NYSE: VNTV) with a Neutral rating and a price target of $52.00.

Analyst John Williams commented, " We initiate coverage of VNTV with a Neutral rating and $52 price target. VNTV shares have worked very well over the last 18 months, helped by a beat-and-raise cycle after an expectations reset and a large acquisition (Mercury). We are Neutral-rated for the following reasons: (1) We like VNTV’s strong growth, estimate upside and visibility, but valuation is no longer discounted vs. peers and the shares now trade at a fairly rich absolute/relative level—not a great setup, in our view. (2) The company’s PIN debit, non-discretionary transaction mix is an asset in the current environment, and its US-only positioning has made the stock a safe haven for investors looking to avoid FX risk (VNTV shares are +73% over the last 18 months, vs. the S&P 500 +7%). (3) VNTV’s acquiring business is in the midst of a key push into smaller merchant categories—challenging given intense competition but positive for revenue growth and margins as smaller merchants offer more attractive pricing compared to larger retailers."

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

Shares of Vantiv closed at $54.62 yesterday.

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