UPDATE 1-JP Morgan cuts VeriFone to neutral; shares sink
(Changes source; adds details, share movement)
Nov 20 (Reuters) - J.P. Morgan Securities downgraded VeriFone Holdings Inc (PAY.N) to "neutral" from "overweight" on Thursday, a day after the electronic payment technology provider cut its fourth-quarter outlook.
The stock shed more than half of its value to touch a lifetime low in morning trade on the New York Stock Exchange.
"Given the uncertainty around forward estimates and limited disclosure until VeriFone reports fourth-quarter results in mid December, we no longer have conviction in recommending the name," JP Morgan said in a note to clients.
The brokerage said it expects the company's 2009 outlook to be conservative, given the tough retail backdrop, challenging selling environment and need to set a beatable bar to re-establish investor confidence.
Wedbush Morgan Securities, which also said the company's 2009 performance would likely be below trend, cut its price target on the stock to $6 from $11.
On Wednesday, VeriFone forecast fourth-quarter non-GAAP earnings of 18 cents to 20 cents a share on revenue of $244 million to $246 million.
Shares of VeriFone were trading down more than 53 percent at $2.90 on the New York Stock Exchange. They touched a lifetime low of $2.31 earlier in the session. The company went public in 2005. (Reporting by Adheesha Sarkar in Bangalore; Editing by Himani Sarkar)
