UPDATE: Bank of America Initiates Coverage on Evertec with Buy Rating, $25 PT on Multiple Positive Factors

In a report published Monday, Bank of America analyst Sara Gubins initiated coverage on

with a Buy rating and $25.00 price target. In the report, Bank of America noted, “Evertec offers payment processing, merchant acquiring, and outsourcing solutions in the Caribbean and Latin America. We rate EVTC a Buy given the company's market-leading position in Puerto Rico, growth opportunities in Latin America, and prospective margin expansion. From 2012-2015E, we forecast revenue and adjusted EPS to grow at 7% and 19% CAGRs, respectively. We base our $25 price objective on 14x our 2014E adjusted EPS of $1.72. Our target multiple is a slight premium to processing peers, which trade at an average 13x consensus 2014E, due to the faster near-term EPS growth we forecast for EVTC.” Evertec closed on Friday at $23.11.