New payment technology platforms such as Apple (AAPL) Pay, along with the security breaches that have plagued retailers like Target (TGT) and Home Depot (HD) , combine to make VeriFone a "huge opportunity hidden in plain sight," Mohr reasoned.
That's because VeriFone operates 5 million of the 8 million payment terminals in the U.S. -- plus 4 million payment terminals internationally. Many of these terminals will need to be upgraded due to the new payment platforms and security breaches.
Currently, only 30% of U.S. terminals are compatible with the new security-chip enabled EMV cards. (EMV stands for Europay, MasterCard (MA) and Visa (V) .) The chip provides an extra layer of protection against would-be thieves by requiring a pin number.
This type of credit card is being phased in during 2015 in the U.S. As many as 70% of U.S. terminals could be EMV chip-compatible in just the next few years, Mohr pointed out.
"Verifone is the biggest beneficiary of the shift, making it a stealth technology play for 2015 and beyond," Mohr added. VeriFone now has a market cap of $3.85 billion.