UPDATE: Nomura Raises PT on Vantiv Following Strong 1Q13 Results

In a report published Monday, Nomura analyst Tulu Yunus reiterated a Buy rating on Vantiv VNTV, and raised the price target from $28.00 to $33.00.

In the report, Nomura noted, “We think the merchant bank channel (thus far a de minimus contributor) is about to become a meaningful driver of revenue growth and can contribute up to ~$100mn in incremental revenues by 2014. VNTV is off to a strong start in 1Q13, and we expect it to deliver modest margin expansion (+10bps) for full-year 2013 as new revenue streams scale. We are raising our target price to $33 to reflect a 17x forward multiple, which we think is justified. We expect revenues to come roughly in line with expectations (potential for a modest beat).”

Vantiv closed on Friday at $26.93.