UPDATE: Deutsche Bank Downgrades Verifone; Lowers PT

According to a research report published this morning, Deutsche Bank has downgraded Verifone PAY from Hold to Sell, and lowered PT from $44 to $40. In the report, Deutsche Bank said, "After further analyzing PAY's organic growth, we believe the 11.8% organic growth stated on the 1Q12 earnings call significantly exaggerates the "true" flat 1Q12 organic growth. In our view, organic growth is being inflated through acquisitions. Additionally, we believe the likelihood of a strong EMV upgrade cycle has been overstated and mobile payments bring significant risk to the model. Given poor financial disclosures, lower true organic growth, future business risks and rich valuation, we are no longer comfortable recommending investors hold PAY shares." Verifone closed Friday at $54.44.