ADS Reports Mixed Q4 Results
Analyst Daniel R Leben of Robert W Baird maintains his "outperform" rating on Alliance Data Systems Corporation (NYSE: ADS). The target price for ADS is set to $72.
Alliance Data Systems reported mixed results for Q4 2009, with inline EPS and revenues short of the estimates. ADS “reiterated 2010 cash EPS guidance of $6.00 with adjusted EBITDA guidance of $650 million and revenues of $2.15 billion,” the analyst says. “The guidance assumes no improvement in economic conditions leading to improved loss rates in the PLC segment, both of which we believe are likely and would provide upside to estimates,” the analyst adds.
Robert W Baird mentions, “We continue to recommend ADS due to the company's solid execution, attractive Epsilon prospects, improving performance in its Private Label Credit portfolio, and potential upside to 2010 estimates as macroeconomic trends point to lower credit losses during 2H10.”
