popped higher Friday, after an upgrade by one analyst who saw value after a yearlong selloff.
Shares of the e-commerce products and services firm climbed 6.1%, or $2.04 to $35.70, in recent trading.
A.G. Edwards analyst Timothy Willi lifted his rating on the stock from sell to hold, citing a more balanced risk/reward ratio after a pullback in the shares. He noted that the stock is down 26% so far this year.
Still, he wrote that "we continue to remain concerned that competitive issues from other Internet vendors and the card networks may be more evident, and this will weigh on growth and profitability."
Major credit card companies like
are currently pursuing -- or have plans to pursue -- the recurring bill-payment market, he said.
Earlier this month, Checkfree took a hit to its price after reporting anemic fourth quarter results and
"The shares had been priced for perfection, perfection was not delivered and, now we believe that the shares are more realistically valued, though we don't find the valuation compelling enough to take a more positive stance on the shares," Willi wrote.
If the company's problems in its fourth quarter were an anomaly, Willi believes it may take a few quarters until the Street regains its confidence in the company. On the other hand, if competition does heat up, concerns "could play out for some time."
"It is still too early to dismiss our concerns, and as a result, we are still inclined to be a bit cautious on this name," he noted.
A.D. Edwards has a banking relationship with Checkfree.