J.P. Morgan Reiterates Overweight Rating on Evertec Following Solid 2Q Results

In a report published Thursday, J.P. Morgan analyst Tien-tsin Huang reiterated an Overweight rating and $26.00 price target on Evertec EVTC.

In the report, J.P. Morgan noted, “EVTC reported solid 2Q results highlighted by a slight revenue beat, in-line EPS and reiterated guidance implying modest acceleration in 2H. More importantly, EVTC surprised us with the introduction of a dividend (1.6% yield) less than four months after its IPO, highlighting the strong FCF and return potential of the company. We are tweaking our estimates for 2Q results, and reiterate our $26 Dec '13 PT and Overweight rating, enhanced by a nice dividend yield with upside potential from international expansion (augmented by new MasterCard license).”

Evertec closed on Wednesday at $24.86.