Market Overview

Why Some Are Expecting Another Guidance Cut From VeriFone

Why Some Are Expecting Another Guidance Cut From VeriFone

Visa Inc (NYSE: V) and Mastercard Inc (NYSE: MA) announced on Thursday that they would delay the liability shift for EMV migration at fuel pumps from October 2017 to October 2020. Following this news, Stifel analysts Christopher C. Brendler, John Davis and Joab Dempsey decided to downgrade their rating on shares of VeriFone Systems Inc (NYSE: PAY) to Hold.

As per a report issued Friday, the experts see this move as “the final straw,” after sticking with the stock in spite of two recent disappointments. “This time, we believe we have an opportunity to be more prescient and prefer to step aside before the company reports fiscal 4Q results in 10 days,” the analysts pointed out.

While the experts believe VeriFone’s guidance carried enough slack to remain unchanged in the face of this adversity, they think the likeliness is not particularly elevated, especially taking into account the firm’s estimate of “how material fuel upgrades are to PAY's 2017 outlook.”

Consequently, and in spite of their confidence in the management team and their belief that the pumps issue largely escaped its control, they decided to move to the sidelines, cutting their price target from $18.00 to 15.00.

VeriFone shares closed Friday down 4.55 percent at $15.52.

Image Credit: By secretlondon123 (Flickr: card reader segfault) [CC BY-SA 2.0], via Wikimedia Commons

Latest Ratings for V

Jul 2019MaintainsOverweight
Jul 2019MaintainsOutperform
May 2019MaintainsNeutralNeutral

View More Analyst Ratings for V
View the Latest Analyst Ratings

Posted-In: Analyst Color News Guidance Downgrades Price Target Previews Analyst Ratings Movers Best of Benzinga


Related Articles (MA + PAY)

View Comments and Join the Discussion!

Latest Ratings

View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Fast Money Traders Weigh In On Apple, Fitbit, Wal-Mart Stores And Nordstrom

Has Skechers Run Too Far?