Deutsche Bank Downgrades VeriFone (PAY) to Sell; Opportunity Muted

Deutsche Bank downgraded VeriFone (NYSE: PAY) from Hold to Sell, price target lowered from $44 to $40.

Deutsche analyst said, "After further analyzing PAY's organic growth, we believe the 11.8% organic growth stated on the 1Q12 earnings call significantly exaggerates the "true" flat 1Q12 organic growth. In our view, organic growth is being inflated through acquisitions. Additionally, we believe the likelihood of a strong EMV upgrade cycle has been overstated and mobile payments bring significant risk to the model. Given poor financial disclosures, lower true organic growth, future business risks and rich valuation, we are no longer comfortable recommending investors hold PAY shares."

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 $54.44 yesterday.

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