UPDATE: Deutsche Bank Initiates Coverage on Alliance Data Systems with Buy Rating, $205 PT on Good Market Position

In a report published Wednesday, Deutsche Bank analyst Ashish Sabadra initiated coverage on Alliance Data Systems Corporation ADS with a Buy rating and $205.00 price target. In the report, Deutsche Bank noted, “We are initiating coverage on ADS, a leading provider of private label card and data-driven marketing services, with a Buy rating and a $205 target price. With retailers increasingly leveraging private label cards as loyalty programs and shifting budget toward data-driven marketing to leverage Big Data, we believe ADS is best positioned given its diverse offerings. In addition, ADS should benefit from accelerated growth of credit sales and receivables (existing clients, portfolio acquisition, and new wins), stable credit quality (potential for lower charge-off and reserve rate), low funding costs, potential for improvement in gross yield, and lower share count as the converts mature.” Alliance Data Systems Corporation closed on Tuesday at $174.10.