Susquehanna downgrades Evertec to Negative on margin pressure

As previously reported, Susquehanna downgraded Evertec to Negative from Neutral with a price target of $28, down from $38. The shares in midday trading are down 7% to $31.49. The company is likely to face negative leverage over the next few years, with its lowest margin region Latin America growing the fastest, the analyst tells investors in a research note. The firm believes Evertec’s transition to outside the borders of its native Puerto Rico is likely to pressure its margins, potentially moving below levels contemplated by consensus.