UPDATE: Compass Point Upgrades Cardtronics to Buy; Core Trends Outweigh Margin Concerns
Compass Point raised its rating on Cardtronics (NASDAQ: CATM) from Neutral to Buy with a reiterated $30 price target.
Compass Point said, "Last week the company released 3Q'12 earnings. Commentary regarding earnings guidance for next year was below consensus. In order to reach next year's consensus estimate of $1.91 growth from 2012 would need to exceed +20% with a $0.10 headwind from interchange. This level of growth would be difficult to achieve on a purely organic basis. While the interchange trends are unfavorable they appear contained. The core trends remain strong. Acquired growth is very likely to continue to benefit earnings it is just a matter of timing. Accordingly, we consider the recent share price decline an attractive opportunity."
Cardtronics closed at $25.27 on Friday.
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