UPDATE: Citigroup Reiterates Neutral Rating, Raises PT on VeriFone Systems Following Solid 4Q13 Results

In a report published Wednesday, Citigroup analyst Philip Stiller reiterated a Neutral rating on

, and raised the price target from $26.00 to $27.00. In the report, Citigroup noted, “PAY delivered a 2nd consecutive beat with improved 4Q13 results highlighted by better North America results. While the FY14 revenue outlook was in-line with consensus, the EPS range was ~12% below at the midpoint given too aggressive margin forecasts that we highlighted in our preview. The downward revisions will likely create some near-term pressure on the stock (indicated down ~4% after hours). New CEO Paul Galant offered some initial comments on his strategic plan for the company and we were encouraged by the approach towards centralization and simplification of the company. That said, it is clear much work still needs to be done to get PAY back on a strong footing amid an evolving competitive landscape. With the reset of EPS expectations we think forward momentum on numbers should be good, but valuation (~16.5x CY14 P/E) is no longer inexpensive and solid execution will be needed. Maintain Neutral on PAY.” VeriFone Systems closed on Tuesday at $25.00.