Alliance Data Systems Corp. Receives “Neutral” Rating from Zacks (ADS)
Alliance Data Systems Corp. (NYSE:ADS)‘s stock had its “neutral” rating reiterated by Zacks in a research report issued to clients and investors on Friday, Analyst Ratings Network reports. They currently have a $271.00 price objective on the stock. Zacks‘ price target suggests a potential upside of 4.82% from the stock’s previous close.
Zacks‘ analyst wrote, “Alliance Data’s fourth-quarter 2013 earnings per share exceeded the Zacks Consensus Estimate as well the year-ago results, driven by solid results across all the segments. The topline fared well on both counts driven by double-digit increase across all the segments and exceeded the $1 billion mark, making it a fifth similar milestone for the company. Core EPS also managed to outperform the guidance. The company’s growth trajectory seems impressive based on its inorganic story. Further, the company has been strengthening its balance sheet to gain financial flexibility. This will allow Alliance Data to capitalize on strategic opportunities. We are optimistic about the dotz coalition loyalty program in Brazil that expanded to 9 regions. Its continued share repurchase programs are also expected to boost its bottom line, thereby enhancing shareholders’ value. However, we are skeptical about the company’s increasing expenses and dependence on limited clients for a major portion of its revenues. We thus remain Neutral on Alliance Data.”
A number of other analysts have also recently weighed in on ADS. Analysts at BMO Capital Markets raised their price target on shares of Alliance Data Systems Corp. from $250.00 to $280.00 in a research note to investors on Friday. Separately, analysts at Nomura raised their price target on shares of Alliance Data Systems Corp. from $211.00 to $232.00 in a research note to investors on Friday. Finally, analysts at JMP Securities upgraded shares of Alliance Data Systems Corp. to an “outperform” rating in a research note to investors on Friday. They now have a $280.00 price target on the stock, up previously from $250.00. Two research analysts have rated the stock with a hold rating and nine have issued a buy rating to the company. The company presently has an average rating of “Buy” and an average target price of $258.81.
Alliance Data Systems Corp. (NYSE:ADS) traded up 2.50% during mid-day trading on Friday, hitting $265.017. The stock had a trading volume of 1,020,587 shares. Alliance Data Systems Corp. has a 1-year low of $151.40 and a 1-year high of $265.35. The stock’s 50-day moving average is $252.8 and its 200-day moving average is $228.2. The company has a market cap of $12.910 billion and a P/E ratio of 37.45.
Alliance Data Systems Corp. (NYSE:ADS) last posted its quarterly earnings results on Thursday, February 6th. The company reported $2.39 earnings per share for the quarter, beating the analysts’ consensus estimate of $2.33 by $0.06. The company had revenue of $1.14 billion for the quarter, compared to the consensus estimate of $1.13 billion. During the same quarter last year, the company posted $1.84 earnings per share. Alliance Data Systems Corp.’s revenue was up 17.4% compared to the same quarter last year. On average, analysts predict that Alliance Data Systems Corp. will post $12.12 earnings per share for the current fiscal year.
Alliance Data Systems Corporation is a provider of transaction-based, data-driven marketing and loyalty solutions serving consumer-based businesses in a variety of industries.
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