Piper Jaffray Assumes VeriFone (PAY) at Overweight

Piper Jaffray assumed coverage on VeriFone (NYSE: PAY) with a Overweight rating and a price target of $38.00 (from $38.50).

Analyst Jason Deleeuw commented, "We assume coverage of PAY with an OW rating and $38 price target (12.0x our ’17E EV/EBITDA) offering ~33% potential upside from current levels. PAY’s shares are -23% YTD vs. the S&P 500/payments peer group at +3%/+36%. PAY is a leading payment solutions provider that we believe is well-positioned to benefit from an increasingly complex payments environment (security, mobile). We forecast PAY to sustain MSD revenue growth and expand margins in FY ‘16/’17 driven by solid international growth and the U.S. EMV upgrade cycle that extends to small/mid-sized merchants & petrol. We believe PAY’s margins will continue to narrow the gap with competitor Ingenico given the duopolistic nature of the global POS terminal market. PAY’s recently announced $200M share repurchase authorization (~6% of the equity) speaks to the sustainability of PAY’s growth and improved cash flow generation, in our view. We see a Bear-Bull valuation range between $32-$43 based on a scenario analysis."

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 $28.54 yesterday.

You May Also Be Interested In

• Gartner (IT) PT Lowered to $206 at BMO Capital, adjusting estimates
• TD Cowen Reiterates Buy Rating on NVIDIA (NVDA), 'unlikely to move significantly on earnings'
• CLSA Starts Astellas Pharma Inc (4503:JP) (ALPMY) at Outperform (2)