J.P. Morgan Raises Estimates on VeriFone (PAY)

J.P. Morgan is out with its report today on VeriFone (NYSE: PAY), raising estimates on PAY.

In a note to clients, J.P. Morgan states, "We're raising estimates to reflect stronger revenue and gross margin trends. We are increasing our FY11 and FY12 adjusted EPS estimates to $1.77 and $2.14 (from $1.67 and $1.96). Our estimates call for 13% and 27% compounded revenue and adj EPS growth through FY12, ranking PAY near the top of our coverage universe. PAY trades 24x our new CY11 EPS estimate ($1.84), versus our payment processing group average of ~15x."

J.P. Morgan's rating and PT on PAY are under review.

Shares of PAY closed Tuesday at $44.61, down 1.83% from Monday's close.