Jefferies Reiterates Buy on Cardtronics (CATM) Despite Potential 7-11 Earnings Loss

Jefferies reiterated a Buy rating on Cardtronics Inc (NASDAQ: CATM), and raised the price target to $42.00 (from $38.00). CATM controls key levers to mitigate the earnings impact from 7-Eleven. Jefferies believes the consensus view is that CATM can only mitigate the earnings impact of the contract loss if 7-Eleven agrees to maintain parts of the relationship.

Analyst Ramsey El-Assal commented, "Despite the common view that CATM stands to lose all of its 7-Eleven earnings after the contract expires, we now believe the company controls key levers (namely Allpoint and bank branding) that should mitigate a significant portion of the earnings impact. For this reason we see the potential for material upside to 2018 Street estimates (as described in our proprietary scenario analysis on page 5). Reiterate Buy."

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

Shares of Cardtronics Inc closed at $34.63 yesterday.

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