UPDATE: JP Morgan Resumes Overweight, $49 Target on VeriFone Systems

JP Morgan resumes its coverage on VeriFone Systems

with an Overweight rating and a $49 price target as the company exhibits strong upside potential given recent deals and favorable end markets. Jp Morgan notes, "We believe the HYC and Point acquisitions set the stage for near-term EPS acceleration and upside (from revenue and cost synergies). Moreover, we believe the U.S. market is in the early stages of an upgrade cycle driven by 1) pent up demand (from recent macro weakness), 2) looming EMV security mandates, and 3) other technological advancements (e.g., NFC), which we think will drive sustainable double-digit revenue and high-teens (or better) EPS growth for the foreseeable future." PAY closed at $37.44 per share on Wednesday.