Ahead Of The Bell: VeriFone Shares Jump

NEW YORK (AP) — Shares of VeriFone Holdings Inc. jumped in premarket trading Wednesday, lifted by signs of improving demand and a growing share of the market for electronic payment services.

Late Tuesday, the company posted a fiscal third-quarter profit of $21.9 million, reversing its loss from the year-ago quarter. VeriFone's earnings, along with its fourth-quarter guidance, topped Wall Street expectations, according to a Thomson Reuters survey.

"We are beginning to believe that the worst may be behind us and that the early stages of a recovery in the business are emerging," RBC Capital Markets analyst Daniel Perlin told investors in a note Wednesday.

Perlin upgraded VeriFone, based in San Jose, Calif., to "Sector Perform" from "Underperform" and raised his price target for shares to $18 from $13.

In a client note, Morgan Keegan analyst Robert Dodd said VeriFone is seeing "early signs" of a rebound "in addition to gaining share and launching some innovative security" products. He reiterated an "Outperform" rating on the stock.

Shares climbed 91 cents, or 8.2 percent, to $12.04 ahead of regular trading.