UPDATE: Credit Suisse Reiterates Outperform Rating, Raises PT on Total System Services Following In-Line 3Q Results Report

Loading...
Loading...
In a report published Wednesday, Credit Suisse analyst Georgios Mihalos reiterated an Outperform rating on
Total System Services
TSS
, and raised the price target from $30.00 to $34.00. In the report, Credit Suisse noted, “TSS reported 3Q results that adj. for a lower tax rate were in-line with our expectations, with slightly lower revenue growth offset by higher margins. Adj. for F/X, 3/4 segments performed in-line/ahead of our estimates, with Merchant Services contining to underperform. 3Q organic constant currency growth was 2.2%, up from 1.3% in 2Q, driven by 6.8% growth in NA. Recently acquired NTSP exceeded expectations. Merchant Services organic revenue declined ~3% (flat ex-BAMS) reflecting pricing pressure and customer attrition in the Indirect business. We sense a near-term turnaround in Merchant is unlikely. TSS reiterated its full year outlook. We expect the company to achieve the low end of its revenue guidance range, but exceed the top end of its adj. EPS guidance given recent margin performance. We are bumping up our 2013 adj. EPS estimate to $1.63 from $1.62 and maintaining our 14/15 estimates despite forecasting lower Merchant growth. We are bumping our TP to $34 from $30 to reflect a valuation more in-line with the peer group.” Total System Services closed on Tuesday at $30.65.
Loading...
Loading...
Posted In: Analyst ColorPrice TargetAnalyst RatingsCredit SuisseGeorgios Mihalos
We simplify 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!

Loading...