UPDATE: Piper Jaffray Initiates VeriFone Systems at Overweight; Well-Positioned Payments Player
Piper Jaffray initiates its coverage on VeriFone Systems (NYSE: PAY) with a rating of Overweight and a price target of $42.
Piper Jaffray notes, "In our view, PAY is well positioned to continue supporting innovation in the payments industry, and has various avenues for growth. Concerns about its organic growth and cash flow have dominated the narrative recently. We believe the recent pullback in the stock represents an attractive buying opportunity as the current valuation does not adequately reflect the value of PAY on a stand-alone basis, acquired businesses or its long-term opportunity. Overall, we believe its 10-15% organic growth target is feasible through core emerging market growth, payment-as-a-service geographic expansion, taxicab and fuel station advertising, encryption and mobile."
PAY closed at $31.21 on Thursday.
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