UPDATE: Morgan Stanley Initiates Coverage on VeriFone Systems with Equal-Weight Rating, $35 PT on Balanced Risk/Reward

In a report published Tuesday, Morgan Stanley analyst Smittipon Srethapramote initiated coverage on

with an Equal-Weight rating and $35.00 price target. In the report, Morgan Stanley noted, “PAY has resolved certification issues and is in the midst of a restructuring effort that should position it for accelerating growth. However, the stock is already pricing in near-term progress, while visibility on longer-term growth remains limited. Risk/reward looks balanced after recent rerating.” VeriFone Systems closed on Monday at $36.72.