Nomura Upgrades Total System Services to “Buy” (TSS)
Total System Services (NYSE:TSS) was upgraded by equities researchers at Nomura from a “neutral” rating to a “buy” rating in a research report issued on Wednesday, TheFlyOnTheWall.com reports. The firm currently has a $38.00 price objective on the stock, up from their previous price objective of $29.00. Nomura’s price objective suggests a potential upside of 20.48% from the company’s current price.
The analysts wrote, “We are upgrading Total System Services (TSS) to Buy from Neutral based on our view that investors will increasingly focus on the largest, fastest-growing, and highest-margin businesses (North America and NetSpend) where we see upside to expectations. The company as a whole is at a point where it will see accelerating revenue and EPS growth, as it turns the page on price pressure and lost business headwinds, enjoys margin expansion, and repurchases shares (sooner than expected). Our TP goes to $38 from $29 (based on the current forward multiple of 16x on our above-consensus 2015 EPS estimate of $2.42). We are also downgrading Global Payments (GPN) to Neutral from Buy. Our TP goes from $57 to $66 (based on 15x our 2015 FY EPS estimate of $4.41). Our downgrade is based largely on valuation. Our bullish investment case (relief from Canada, margin upside, and accelerated capital return) has largely been played out and we see a more balanced risk/reward to owning GPN shares at these levels.”
Shares of Total System Services (NYSE:TSS) traded up 1.40% on Wednesday, hitting $31.98. The stock had a trading volume of 247,687 shares. Total System Services has a 52-week low of $21.10 and a 52-week high of $31.67. The stock’s 50-day moving average is $30.69 and its 200-day moving average is $28.07. The company has a market cap of $6.069 billion and a price-to-earnings ratio of 24.87.
Total System Services (NYSE:TSS) last posted its quarterly earnings results on Tuesday, October 22nd. The company reported $0.49 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.46 by $0.03. The company had revenue of $588.07 million for the quarter, compared to the consensus estimate of $587.13 million. During the same quarter in the prior year, the company posted $0.32 earnings per share. The company’s quarterly revenue was up 25.6% on a year-over-year basis. On average, analysts predict that Total System Services will post $1.72 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Thursday, January 2nd. Investors of record on Thursday, December 19th will be paid a dividend of 0.10 per share. This represents a $0.40 annualized dividend and a dividend yield of 1.27%. The ex-dividend date is Tuesday, December 17th.
In other Total System Services news, Director Mason Lampton sold 3,250 shares of the stock in a transaction dated Thursday, December 12th. The stock was sold at an average price of $31.05, for a total value of $100,912.50. Following the sale, the director now directly owns 26,700 shares in the company, valued at approximately $829,035. The sale was disclosed in a document filed with the SEC, which is available at this link.
A number of other analysts have also recently weighed in on TSS. Analysts at Robert W. Baird upgraded shares of Total System Services from a “neutral” rating to an “outperform” rating in a research note to investors on Tuesday, December 3rd. They now have a $38.00 price target on the stock, up previously from $35.00. Separately, analysts at Jefferies Group raised their price target on shares of Total System Services from $28.00 to $30.00 in a research note to investors on Monday, October 28th. They now have a “hold” rating on the stock. Finally, analysts at Credit Suisse raised their price target on shares of Total System Services from $30.00 to $34.00 in a research note to investors on Thursday, October 24th. They now have an “outperform” rating on the stock. Two investment analysts have rated the stock with a sell rating, six have given a hold rating and eleven have issued a buy rating to the stock. The company presently has a consensus rating of “Hold” and a consensus target price of $33.00.
Total System Services, Inc (NYSE:TSS), is a global payment solutions provider that provides services to financial and nonfinancial institutions.
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