UPDATE: J.P. Morgan Reiterates Neutral Rating, Raises PT on Alliance Data

In a report published Wednesday, J.P. Morgan reiterated its Neutral rating on Alliance Data Systems Corporation ADS, and raised its price target from $114.00 to $120.00. J.P. Morgan noted, “With its suite of data-driven and transaction based marketing products, Alliance Data is positioned to benefit from the domestic secular shift away from traditional mass marketing towards more targeted marketing programs that provide quantifiable and measurable returns. The Company is attempting to replicate its Canadian coalition loyalty program (Air Miles Reward Program) in Brazil (and possibly other countries). Moreover, Alliance Data's ~$5.5bn private label credit card portfolio generates industry leading ROA and we believe improving delinquency and charge-off trends will drive a gradual release in reserves, which could be worth an incremental $1.25 boost to annualized core EPS over the next few years.” Alliance Data Systems Corporation closed Tuesday at $131.11.