Deutsche Bank Securities’ Bryan Keane, who spent the past four years as a runner-up, rises to third place. The San Francisco–based analyst tracks 23 stocks and earns particular investor praise for his contrary coverage of San Jose, California–based VeriFone Systems, an electronic payment systems provider. In April 2012, Keane downgraded the shares from hold to sell, at $54.44, and lowered his target price for them from $44 to $40, citing his concern that management’s projected organic growth rate of 10 to 15 percent for 2012 and beyond was too optimistic. The company stuck by its forecast but went on to record contraction in the pro forma value over four straight quarters, from a 10 percent rise in second-quarter 2012 to a 7.1 percent decline in first-quarter 2013. Along the way, the CFO and CEO departed and the company refocused on growing from within — and Keane kept pounding the table and reducing his target, settling at $13 in early June. From his April downgrade last year through August 2013, VeriFone’s shares swooned 63.6 percent, to $19.82, and lagged the sector by 71.7 percentage points. Overall, however, Keane is positive on the sector. His favorite information technology services name is Teaneck, New Jersey–based Cognizant Technology Solutions Corp.; and he recommends Western Union Co. of Englewood, Colorado, as the best of the transaction processor segment. — Pam Baker |
Western Union Co. VeriFone Systems Deutsche Bank Bryan Keane Cognizant Technology Solutions Corp.
