UPDATE: JP Morgan Upgrades Heartland Payment Systems to Overweight on Margin Expansion Outlook

JP Morgan raised its rating on Heartland Payment Systems HPY from Neutral to Overweight and increased its price target from $37 to $42. JP Morgan commented, "We are upgrading our rating on HPY from Neutral to Overweight as we see high potential for EPS upside from continued margin expansion closer to peers stemming from operational effectiveness and scale economies. Revenue growth should remain steady, as HPY's transparent pricing and merchant advocate strategy should resonate well with merchants that are gaining power and knowledge on the back of regulation and litigation settlement. HPY ranks as one of the fastest EPS growers in our coverage universe, making it a strong candidate to be Overweight." Heartland Payment Systems closed at $30.25 on Friday.