Loading...
Loading...
In a report published Wednesday, Nomura analyst Bill Carcache reiterated a Neutral rating on
Alliance Data Systems CorporationADS, and raised the price target from $182.00 to $185.00.
In the report, Nomura noted, “ADS's story is little changed: private label continues to power growth for the overall company and Epsilon is carrying its weight. We're encouraged by management's commentary around the scale of new business wins in PL (it indicated the current vintage can grow to represent $2bn over 3 years, or ~28% of current period-end receivables). We expect the 2013 vintage to be a key driver of loan and earnings growth over the next 2-3 years. We believe that ~50% tender share standard leaves a lot of room for growth and sets a high bar for the company to strive towards with the remainder of its client base. We're nudging our estimates higher to reflect this quarter's results and upbeat commentary on the impact of new business wins. We're leaving our Neutral rating unchanged based on our view that shares are fairly valued (trading at 16.1x / 16.0x 2014 cons. / our EPS ests).”
Alliance Data Systems Corporation closed on Tuesday at $193.58.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in