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

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Will Alliance Data Stock Gain On Conversant Deal Closure?

In a report published Wednesday, J.P. Morgan reiterated its Neutral rating on Alliance Data Systems Corporation (NYSE: 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.

Latest Ratings for ADS

DateFirmActionFromTo
Dec 2014Keefe Bruyette & WoodsMaintainsMarket Perform
Oct 2014CitigroupMaintainsNeutral
Sep 2014NomuraMaintainsBuy

View More Analyst Ratings for ADS
View the Latest Analyst Ratings

Posted-In: J.P. Morgan & Co.Analyst Color Price Target Reiteration Analyst Ratings

 

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