VeriFone Systems Down 10% on Deutsche Bank Downgrade
VeriFone Systems (NYSE: PAY) is trading lower on the session following a downgrade at Deutsche Bank. PAY was cut from Hold to Sell and its price target was lowered from $44 to $40 per share.
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."
VeriFone Systems is currently trading at $49.00, a loss of $5.44 or 9.99%.
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