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
| Date |
Firm |
Action |
From |
To |
| Oct 2016 |
Guggenheim |
Downgrades |
Buy |
Neutral |
| Oct 2016 |
UBS |
Maintains |
|
Buy |
| Oct 2016 |
Drexel Hamilton |
Maintains |
|
Hold |
View More Analyst Ratings for
V
View the Latest Analyst Ratings
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