Alliance Data Systems Reports Mixed January Earnings, Goldman Remains Neutral

Goldman Sachs has published a research report on Alliance Data Systems ADS after the company reported mixed earnings during the month of January. In the report, Goldman Sachs writes "ADS released its monthly Private Label managed credit quality update and Master Trust data. Managed 30+ day delinquencies (which we view as the best indicator of future charge-offs, despite management's focus on current month charge-offs) were 6.1%, up from 5.4% in December, while net charge-offs (NCOs) were down 60bp mom at 8.5%. Both were seasonally in line. Master Trust 30+ day delinquencies and charge-offs trended similarly, at 5.77% (vs. 5.45% in December) and 8.72% (vs. 9.06% in December)." Goldman Sachs maintains nits Neutral rating and $70 price target. Alliance Data Systems closed yesterday at $79.15.