Deutsche Bank Reiterates a 'Sell' on VeriFone (PAY); Quarter Disappoints
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Price: $41.86 -0.78%
Rating Summary:
7 Buy, 26 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
7 Buy, 26 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Deutsche Bank reiterates a 'Sell' on VeriFone (NYSE: PAY) price target of $27.00 (from $30.00).
Deutsche analyst said, "PAY reported 3Q12 non-GAAP revenues of $493m, below our estimate of $503m, and pro forma EPS of $0.75, ahead of our $0.71 estimate mostly due to a lower tax rate. Pro forma organic growth of 6% (includes acquisitions) was below our 8% estimate due to a fire slowing production in Brazil, the absence of a software feature, and weakness in Europe. PAY surprisingly guided 4Q12 and FY13 revenues below Street estimates, with more questions arising about sustainability of FCF. Due to weak fundamentals, we are cutting our TP."
On lower tax rates, Deutsche Bank raises FRY12 EPS estimate from $2.69 to $2.75 and FY13 from $3.25 to $3.30.
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 $35.38 yesterday.
Deutsche analyst said, "PAY reported 3Q12 non-GAAP revenues of $493m, below our estimate of $503m, and pro forma EPS of $0.75, ahead of our $0.71 estimate mostly due to a lower tax rate. Pro forma organic growth of 6% (includes acquisitions) was below our 8% estimate due to a fire slowing production in Brazil, the absence of a software feature, and weakness in Europe. PAY surprisingly guided 4Q12 and FY13 revenues below Street estimates, with more questions arising about sustainability of FCF. Due to weak fundamentals, we are cutting our TP."
On lower tax rates, Deutsche Bank raises FRY12 EPS estimate from $2.69 to $2.75 and FY13 from $3.25 to $3.30.
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 $35.38 yesterday.
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