Total System Services Given New $33.00 Price Target at Citigroup Inc. (TSS)
Investment analysts at Citigroup Inc. raised their target price on shares of Total System Services (NYSE:TSS) from $31.00 to $33.00 in a note issued to investors on Tuesday, ARN reports. The firm currently has a “buy” rating on the stock. Citigroup Inc.’s target price suggests a potential upside of 17.56% from the company’s current price.
The analysts wrote, “We reiterate our Buy on TSS and raise our price target to $33 from $31. The set-up is favorable, in our view, given the steady stream of emerging catalysts over the next several quarters, including: (i) Client conversions that lead to a higher Accounts-On-File (AOF) count, (ii) Easier comps, (iii) Removal of negative cost drags as TSS’ investment in newer processing systems ends by 1Q14, (iv) Debt pay-down, (v) Return to share repurchases, (vi) Possible higher dividend over time. These are on top of the normal benefit from the secular trend of ‘digitization of money’ (more cards, more electronic transactions). Overall, we believe that TSS can generate a higher 14%-17% growth rate on top of a higher 2013 base compared to the historical 11%-13% rate due to the recently completed NTSP acquisition. Lastly, we believe the stock is still attractively valued even though the recent performance has been quite good. Buy TSS.”
A number of other analysts have also recently weighed in on TSS. Analysts at Evercore Partners raised their price target on shares of Total System Services from $29.00 to $33.00 in a research note to investors on Tuesday, August 13th. They now have an “overweight” rating on the stock. Separately, analysts at Jefferies Group raised their price target on shares of Total System Services from $23.00 to $28.00 in a research note to investors on Thursday, August 1st. They now have a “hold” rating on the stock. Finally, analysts at Susquehanna raised their price target on shares of Total System Services from $27.00 to $30.00 in a research note to investors on Wednesday, July 24th. They now have a “positive” rating on the stock.
Two equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating and eight have given a buy rating to the company. The company has an average rating of “Hold” and an average price target of $28.38.
Shares of Total System Services (NYSE:TSS) traded down 1.14% during mid-day trading on Tuesday, hitting $27.75. 222,792 shares of the company’s stock traded hands. Total System Services has a 1-year low of $21.10 and a 1-year high of $28.62. The stock has a 50-day moving average of $27.11 and a 200-day moving average of $24.68. The company has a market cap of $5.256 billion and a price-to-earnings ratio of 22.46.
Total System Services (NYSE:TSS) last issued its quarterly earnings data on Tuesday, July 23rd. The company reported $0.34 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.33 by $0.01. The company had revenue of $478.44 million for the quarter, compared to the consensus estimate of $483.16 million. During the same quarter in the prior year, the company posted $0.35 earnings per share. The company’s quarterly revenue was up 3.4% on a year-over-year basis. On average, analysts predict that Total System Services will post $1.71 earnings per share for the current fiscal year.
Total System Services, Inc (NYSE:TSS), is a global payment solutions provider that provides services to financial and nonfinancial institutions.
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