VeriFone (PAY) Estimates, PT Raised at Piper Jaffray Posts Q2

Piper Jaffray analyst Michael Grondahl bumped estimates and his price target on VeriFone (NYSE: PAY) to $36.00 (from $31.00) but maintained a Neutral rating following Q2 results. The firm notes more signs of progress.

Grondahl commented, "After the market close, PAY reported non-GAAP revenues and EPS of $466.8M and $0.37, respectively. This was above Piper at $440.1M and $0.31, respectively. PAY also beat its FY2Q14 guidance for revenues of $440M-$445M and non-GAAP EPS of $0.31. Revenues during the quarter benefited from strong sales into Australia, Brazil and Turkey. During the quarter margins declined 100 bps Q/Q to 41.4% from an unfavorable product mix in the services business and seasonality in the taxi business. While we believe the April quarter showed good progress towards PAY's transformation, we highlight that PAY is still in the early stages of executing its plan. We reiterate our Neutral rating but increase our price target to $36 from $31 based on 18.5x FY15E non-GAAP EPS of $1.95."

The firm bumped FY 2014 EPS from $1.40 to $1.42 and FY 2015 EPS from $1.83 to $1.95.

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 $33.82 yesterday.

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