UPDATE: Stifel Initiates Coverage On VeriFone Systems Inc

Analysts at Stifel initiated coverage on shares of Verifone Systems Inc (NYSE: PAY) with a Hold rating and $36 price target.

Within the report, Christopher Brendler noted, “As a leading provider of secure payment solutions for merchants around the globe, VeriFone appears to have the wind at its back as recent retailer data breaches have ignited demand for next-gen payments solutions.“

Furthermore, analysts find "CEO Paul Galant has made significant progress, with the sharpened product set and additional cost initiatives we expect operating margins to improve significantly, up 210 bps in 2015E and another 170 bps in 2016E."

On the other hand, despite the positives, analysts believe the stock is adequately valued given that the stock is up over 100 percent since June 2013.

Shares of VeriFone recently traded at $35.08, up 0.17 percent.