UPDATE: Morgan Stanley Initiates Coverage on Evertec with Overweight Rating, $23 PT on Multiple Growth Drivers

In a report published Tuesday, Morgan Stanley analyst Suzanne E. Stein initiated coverage on Evertec EVTC with an Overweight rating and $23.00 price target. In the report, Stein noted, “In addition to growth from new customers, cross-sell potential, and expansion into new verticals in its home market of Puerto Rico, EVERTEC appears uniquely positioned to move into other high-growth markets in LatAm. A suite of services that span the entire transaction processing chain and an existing foothold in Puerto Rico give the company an advantage over other larger competitors. Our model forecasts a 7% revenue growth CAGR ('12-'15) and 28% net income CAGR, which implies ~2.5% penetration of the addressable payments market in LatAm.” Evertec closed on Monday at $20.25.