UPDATE: Jefferies Initiates VeriFone Systems at Hold on Execution Risk

Jefferies initiated downgrades Verifone Systems

from Outperform to Sector Perform. Jefferies noted, "After the stock's recent move, we think the bull and bear cases on PAY net out, and we initiate with a Hold rating. We think PAY is unlikely to be broadly disintermediated by new entrants, but we do believe the rapid acceleration in pace of POS technology change is materially increasing the complexity of PAY's business, thereby elevating the degree of execution risk." VeriFone Systems closed at $34.90 on Thursday.