VeriFone rises as analyst says it's on right path
NEW YORK (AP) — VeriFone's stock climbed more than 7 percent on Friday as an analyst said that the electronic payment company seems to be on the right path toward improving its share price.
THE SPARK: VeriFone's shares are down 20 percent for the year-to-date and have declined 15 percent over the past month. But Philip Stiller of Citi Investment Research says he met with VeriFone CEO Doug Bergeron this week and was encouraged by the discussion and the company's plans for getting the stock price up.
"We believe VeriFone has a clear understanding of what it needs to do for the stock to recover, which is deliver good/clean results and improve transparency," he wrote in a client note.
THE ANALYSIS: Stiller says may investors pressured VeriFone to buy back stock due to weakness in the shares, but he says the near-term likelihood of stock repurchases is low considering that most of the company's cash is overseas. The analyst says VeriFone may reconsider a buyback if the stock continues to be soft over the next couple of quarters.
Stiller reaffirmed a "Buy" rating and $47 price target.
SHARE ACTION: Shares of VeriFone Systems Inc. rose $1.91, or 6.5 percent, to$31.50 in afternoon trading. The stock has traded between $27.33 and $55.89 over the last year.