UPDATE: Keefe Bruyette & Woods Downgrades Heartland Payment Systems to Market Perform

Keefe Bruyette & Woods reduced its rating on Heartland Payment Systems

from Outperform to Market Perform on valuation grounds but maintained its $34 price target. Keefe Bruyette & Woods commented, "Following HPY's 2Q12 results, we are raising our 2012 and 2013 EPS estimates to $1.52 (from $1.46) and $1.77 (from $1.69), respectively, to incorporate this quarter's beat and a stronger operating margin. However, we are downgrading shares of HPY to Market Perform from Outperform based on valuation, but maintaining our $34 price target." Heartland Payment Systems closed at $31.70 on Tuesday.