UPDATE: UBS Upgrades VeriFone to Buy on Attractive Risk/Reward
UBS raises its rating on VeriFone (NYSE: PAY) from Neutral to Buy but reduces its price target from $48 to $37.
UBS notes, "Several factors have driven the recent massive re-rating (1) many investors were hoping for a 2QFY12 beat/raise that did not materialize; (2) worries over organic/acquired growth emerged (and are now less of an issue given recent disclosures), (3) EMEA region exposure is up from 27% of revs. in FY11 to 43% in FY12E (due mostly to Point); and (4) FX headwinds emerged and caught us off-guard as prior impacts were usually mitigated by quick pricing revisions."
PAY closed at $30.25 on Friday.
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