Zacks Investment Research downgraded shares of VeriFone Systems Inc. (PAY) from NEUTRAL to UNDERPERFORM on July 15, 2013, with a target price of $16.00.
VeriFone reported a disappointing second quarter of 2013 as it missed the Zacks Consensus Estimate by $0.03. The company lowered its second half outlook based on the ongoing turmoil in the Middle East distribution channel, delay in completing certification of products, lack of new products in the near term and increasing competition. Although the company's increasing spending on research & development and technical sales personnel is expected to drive sales volume, we believe this may put margins under pressure. Additionally, customer concentration, integration risks related to frequent acquisitions and a highly leveraged balance sheet remain concerns over the long term. Therefore, we downgrade our recommendation from Neutral to Underperform and set a price target of $16.00.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on VeriFone Systems Inc. (PAY),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment