In a report published Tuesday, Deutsche Bank analyst Ashish Sabadra reiterated a Buy rating on Alliance Data Systems ADS, and raised the price target from $205.00 to $240.00.
In the report, Deutsche Bank noted, “Yesterday, we caught up with the CFO, Charles Horn, who remains bullish on the accelerated growth in the Private Label and Epsilon and comfortable with the recovery in LoyaltyOne. With a differentiated offering and unique positioning, ADS should benefit from the retailer shift towards data driven marketing and omni-channel strategy by offering end to end marketing solutions tailored to its private label segment. ADS is on track to roughly double the vintage receivable wins in FY13 (est. ~$2bn) of which ~50% is acquired from competitors. Also, ADS's retailer-aligned mobile strategy and recently announced PayPal partnership (sets the stage for similar partnership with other Digital/mobile wallet providers) positions it well for mobile payments. We are raising our target price to $240 (from $205) and reiterating our Buy rating.”
Alliance Data Systems closed on Monday at $206.70.
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