Jefferies Reiterates Buy as VeriFone Systems (PAY) Cuts Guidance

Jefferies reiterated a Buy rating and $40.00 price target on VeriFone Systems (NYSE: PAY) following the company's 2Q earnings report. PAY lowered F16 revenue guidance to $2.1B, compared to the Street's $2.16B estimate. Non-GAAP EPS guidance was also cut to $1.85 vs. the Street's $2.23.

Analyst Jason Kupferberg commented, "PAY reported a modest F2Q revs beat, but a significant EPS miss. While pricing pressure (primarily in Mexico) and softening demand in Asia drove the bulk of the rev guide down, U.S. mix shift (related to petrol outperformance and EMV certification delays) contributed to the larger EPS cut. Shares may have support around $20 based on the exit run rate of EPS in F16, but visibility on F17 is clouded for now."

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 $28.23 yesterday.

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