Barclays Maintains an 'Overweight' on VeriFone (PAY); Signs Agreement to Acquire Software & Services Vendor Point International
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Price: $40.00 +4.11%
Rating Summary:
7 Buy, 26 Hold, 0 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
7 Buy, 26 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Overweight' on VeriFone (NYSE: PAY) price target of $55.00.
Barclays analyst says, "The deal is expected to close by December-end, with a less than 5% cost of capital. Point's software provides a gateway connection that quickly enables merchants to accept both traditional and emerging (e-commerce, NFC, loyalty/couponing) payment methods, and Point also provides security services and terminal support. PAY said the deal would be immediately additive to growth rates (by 1%) and operating margins (by 1-2%), and provided guidance for non-GAAP EPS accretion of $0.08-0.10 in FY 2012 and $0.30-0.35 in FY 2013 (based on $260 million in sales and $83 million in operating profit in the first 12 months). Accretion includes a reduced non-GAAP company tax rate (from 20% to 18%). Post-deal leverage is 3x, with plans to delever rapidly enabled by free cash flow generation."
For an analyst ratings summary and ratings history on VeriFone click here. For more ratings news on VeriFone click here.
Shares of VeriFone closed at $44.44 yesterday.
Barclays analyst says, "The deal is expected to close by December-end, with a less than 5% cost of capital. Point's software provides a gateway connection that quickly enables merchants to accept both traditional and emerging (e-commerce, NFC, loyalty/couponing) payment methods, and Point also provides security services and terminal support. PAY said the deal would be immediately additive to growth rates (by 1%) and operating margins (by 1-2%), and provided guidance for non-GAAP EPS accretion of $0.08-0.10 in FY 2012 and $0.30-0.35 in FY 2013 (based on $260 million in sales and $83 million in operating profit in the first 12 months). Accretion includes a reduced non-GAAP company tax rate (from 20% to 18%). Post-deal leverage is 3x, with plans to delever rapidly enabled by free cash flow generation."
For an analyst ratings summary and ratings history on VeriFone click here. For more ratings news on VeriFone click here.
Shares of VeriFone closed at $44.44 yesterday.
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