VeriFone (PAY) Issues 'Fixable', Says UBS
UBS today maintained a Buy rating on VeriFone (NYSE: PAY) and lowered its price target to $21.00 (from $25.00). Yesterday VeriFone reported Q2 results that missed estimates and guidance that was well short of consensus.
Commenting, analyst John T. Williams of UBS said, "Clearly, lingering legacy issues could not be resolved quickly enough and continue to weigh. While N. America results were negatively impacted by timing, int'l. was the real culprit (Europe/Brazil product certification delays; R&D underinvestment, EMEA reseller distribution into embargoed countries). We believe these issues are serious but fixable—though they cannot be fully healed in just three months' time."
On a positive note, Williams said he thinks secular trends are intact, emerging tech (i.e. Square) is having a limited impact, and PAY's strong 60% market share and duopoly position are key advantages.
For an analyst ratings summary and ratings history on VeriFone (NYSE: PAY) click here. For more ratings news on VeriFone click here.
Shares of VeriFone closed at $21.95 yesterday, with a 52 week range of $17.93-$39.00.
Commenting, analyst John T. Williams of UBS said, "Clearly, lingering legacy issues could not be resolved quickly enough and continue to weigh. While N. America results were negatively impacted by timing, int'l. was the real culprit (Europe/Brazil product certification delays; R&D underinvestment, EMEA reseller distribution into embargoed countries). We believe these issues are serious but fixable—though they cannot be fully healed in just three months' time."
On a positive note, Williams said he thinks secular trends are intact, emerging tech (i.e. Square) is having a limited impact, and PAY's strong 60% market share and duopoly position are key advantages.
For an analyst ratings summary and ratings history on VeriFone (NYSE: PAY) click here. For more ratings news on VeriFone click here.
Shares of VeriFone closed at $21.95 yesterday, with a 52 week range of $17.93-$39.00.