EVERTEC cut to Neutral at Susquehanna on fading revenue growth, more competition
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Susquehanna analyst James Friedman downgrades Puerto Rico-based EVERTEC (NYSE:EVTC) to Neutral on the basis of increasing competition from larger peers and decelerating revenue growth.
Shares of EVTC edge lower by 1% in pre-market trading.
The analyst highlights the company's robust performance in 2021, which could make this year more challenging, Friedman writes in a note to clients.

Looking at EVERTEC's (EVTC) Income Statement on a Q/Q basis, Q3 revenue slipped from its peak in the prior period, while the cost of revenue jumped in the third quarter.
Some of the company's largest fintech rivals include: PayPal (NASDAQ:PYPL), Fiserv (NASDAQ:FISV) Fidelity National Information Services (NYSE:FIS), Global Payments (NYSE:GPN), Paysafe (NYSE:PSFE) and SoFi Technologies (NASDAQ:SOFI).
Additionally, "drying up stimulus payments, unique contracts involving revenue minimums, and CPI caps from large clients may gate growth and margins near term," Friedman explains.
The Neutral rating aligns with the Hold Quant Rating (with the poorest factor grades in Valuation and Growth) and disagrees with the Buy Wall Street Analyst Rating ( Strong Buy, 2 Buy, 2 Hold, 1 Strong Sell).
Previously, (Oct. 27, 2021) EVERTEC EPS meets the consensus and beats on revenue.