Lipman Electronic Engineering Ltd (LPMA) (LPMA)

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Merrill Lynch repeats Buy rating for Lipman after Spanish certification
20.7.2005 / 10:39
TheMarker

Merrill Lynch on Tuesday repeated a Buy rating for Lipman Electronic Engineering (Nasdaq, TASE: LPMA ), after the Israeli company announced on Monday that its EMV compliant NURIT 8010 Point of Sale (POS) terminal has been certified by Sistema 4B in Spain.

This certification enables Lipman to sell its NURIT 8010 wireless terminal to all banks that process their payment transactions through Sistema 4B, which is used by more than 30 financial institutions.

The analytical team explains it thinks some morders were delayed in the second quarter because Lipman had not received proper bank certification in Spain. The team, led by Gregory Smith, expects Spanish sales to pick up in the third quarter.

Lipman had already been active there: Spain generated 8% of the company's revenues in the fiscal year 2004, with $16 million worth of orders. Merrill Lynch expects the Spanish market to grow 20% on an annual basis for Lipman.

The analysts are relatively confident that Lipman will meet expectations for the year 2005, based on robust global demand for payment terminals.

They left their out look for the Israeli company unchanged at $277 million revenues in 2005 and pro forma earnings per share of $1.62, an increase of 19% over the year 2004.

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