VeriFone shares fall after Wedbush downgrade

Shares of VeriFone Holdings Inc. declined Wednesday after a Wedbush Morgan analyst downgraded the payment processing equipment maker, saying the stock's current value does not reflect the risk posed to them by deteriorating market conditions and other problems.

Analyst Gil B. Luria downgraded VeriFone to "Sell" from "Hold." Other reasons for the downgrade include the company's "worsening competitive position," the analyst added.

Luria said rival Ingenico SA, a French payment technology company, "has already become the global market leader for payment terminals, and is in a position to extend that lead beyond VeriFone's reach if it acquires the third largest global player Hypercom."

The analyst kept a target price of $4.50. He said the shares are "well ahead" of themselves.

Shares of San Jose, Calif.-based VeriFone fell 47 cents, or 5.8 percent, to $7.66 in afternoon trading. The stock has traded in the 52-week range of $2.31 and $21.17.