UPDATE: Morgan Stanley Reiterates on Evertec Following Delays in International Expansion
In a report published Thursday, Morgan Stanley analyst Smittipon Srethapramote reiterated an Equal-Weight rating on Evertec (NYSE: EVTC), but lowered the price target from $26.00 to $24.00.
In the report, Morgan Stanley noted, “Puerto Rico macro headwinds still manageable, but delays in international expansion leads to lowered 2014 guidance. Despite continued contraction in the Puerto Rican economy, EVTC continued to experience positive transaction growth due to the continued secular shift of cash to cards. But growth outside of PR continues to be impacted by business delays. EVTC expected to receive a merchant acquiring license from Visa in Colombia by YE13, which is now expected in 2Q14. Mgmt also noted delays in closing two sizable JV deals in LatAm that are not included in 2014 guidance.”
Evertec closed on Wednesday at $24.07.
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