Morgan Keegan Disccuses Verifone Holdings Hostile Bid For Hypercom (PAY)

Morgan Keegan takes a look at VeriFone Systems, Inc.

, after the company announced a hostile bid for Hypercom. It rates shares of Verifone at Outperform, and has a $32 price target. In the research report, Morgan Keegan writes, "We believe this transaction (especially the combined US small business segment and the UK) may come with regulatory hurdles with the combination of the second and third largest global terminal makers. Regardless of regulatory approval, we continue to have confidence in the company's ability to shift its revenue generation model to more recurring in nature (though the merger would be both a strategic and financial positive for the company). Therefore, we are maintaining our Outperform Rating and price target of $32/share." Shares of VeriFone gained 4 cents yesterday to close at $29.05.