UPDATE: Deutsche Bank Raises PT to $25, Maintains Buy on Total System Services
Deutsche Bank reiterates its Buy rating on Total System Services (NYSE: TSS) and raises its price target to $25 from $22 as the company posts a solid revenue beat and sets bullish tone for 2012.
Deutsche Bank says, "TSS reported solid revs exreimbursables (“revs”) of $408m (9.1% Y/Y, 7.8% organic), exceeding our est of $395m (5.7% Y/Y), and EPS of $0.31 which fell in line with our est. TSS conservatively guided to FY12 revs of $1,569m - $1,624m (2% - 5% Y/Y, 4.5% organic) and EPS of $1.26-1.28 compared to our prior ests of $1,616m and $1.27, respectively. With strong organic growth, a solid prospect pipeline, attractive valuation, and solid dividends, we are reiterating our Buy rating and raising our target price to $25."
TSS closed at $20.94 a share on Tuesday.
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