UPDATE: Citigroup Cuts PT to $55 on PAY; FX Challenges

Citigroup reduces its price target on VeriFone Systems

from $57 to $55 as it reiterates a Buy rating on shares. Citigroup notes, "PAY reported adjusted EPS of $0.64, which was a clean $0.02 beat vs. our expectation and a $0.03 beat vs. consensus due to the strong revenue and margin performance. Mgmt maintained its full year revenue and EPS guidance despite the beat and blamed the incremental 2H softness on growing headwinds from the strengthening US dollar. We are lowering our 2012-14 EPS slightly. We are adjusting our PT to $55 (from $57) and we are Buyers of PAY on weakness." PAY closed at $45 on Thursday.