Alliance Data Systems (ADS) Lifted to Buy at Zacks Investment Research
Alliance Data Systems (NYSE:ADS) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Tuesday. The firm presently has a $310.00 price objective on the business services provider’s stock. Zacks Investment Research‘s price target indicates a potential upside of 12.17% from the stock’s current price.
According to Zacks, “Alliance Data remains well-positioned for growth from significant opportunities owing to the current trend in consumer-based businesses, shifting their marketing spends to data-driven marketing strategies. It has made several strategic acquisitions to grow inorganically. Solid receivables growth in Card Services along with strength in LoyaltyOne and Epsilon segments should continue to drive top-line growth. For 2017, core EPS is expected at $18.10 on $7.8 billion revenues and for 2018, core EPS is projected at $21.50 on revenues of $8.7 billion. However, increasing expenses and dependence on limited clients for revenues, raise concerns. Shares of Alliance Data have underperformed the industry in a year. It is set to release fourth quarter results on Jan 25. A Zacks Rank #2 increases the predictive power of a beat, but combined with the Earnings ESP of -1.27%, makes prediction difficult.”
A number of other research analysts also recently weighed in on ADS. Barclays reiterated an “equal weight” rating and issued a $298.00 price objective (up previously from $278.00) on shares of Alliance Data Systems in a research report on Monday, January 8th. Robert W. Baird reiterated a “hold” rating and issued a $270.00 price objective on shares of Alliance Data Systems in a research report on Tuesday, January 9th. Royal Bank of Canada reiterated a “buy” rating and issued a $293.00 price objective on shares of Alliance Data Systems in a research report on Thursday, January 4th. BMO Capital Markets reiterated a “hold” rating and issued a $235.00 price objective on shares of Alliance Data Systems in a research report on Wednesday, October 18th. Finally, Keefe, Bruyette & Woods reiterated a “buy” rating and issued a $300.00 price objective on shares of Alliance Data Systems in a research report on Friday, October 6th. Four investment analysts have rated the stock with a sell rating, eight have given a hold rating and eleven have given a buy rating to the company’s stock. Alliance Data Systems currently has a consensus rating of “Hold” and an average target price of $267.59.
Alliance Data Systems (NYSE:ADS) last issued its quarterly earnings results on Thursday, October 19th. The business services provider reported $5.35 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.80 by $0.55. The business had revenue of $1.91 billion for the quarter, compared to the consensus estimate of $1.97 billion. Alliance Data Systems had a return on equity of 62.95% and a net margin of 7.09%. The business’s quarterly revenue was up 1.4% on a year-over-year basis. During the same period in the prior year, the firm posted $4.74 earnings per share. sell-side analysts forecast that Alliance Data Systems will post 17.08 earnings per share for the current year.
In related news, CFO Charles L. Horn sold 2,128 shares of the company’s stock in a transaction dated Thursday, November 30th. The shares were sold at an average price of $235.00, for a total transaction of $500,080.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 2.60% of the stock is owned by corporate insiders.
A number of hedge funds have recently added to or reduced their stakes in the business. Convergence Investment Partners LLC raised its holdings in Alliance Data Systems by 9.0% in the 4th quarter. Convergence Investment Partners LLC now owns 17,480 shares of the business services provider’s stock valued at $4,431,000 after acquiring an additional 1,438 shares during the last quarter. USS Investment Management Ltd boosted its holdings in shares of Alliance Data Systems by 24.3% in the fourth quarter. USS Investment Management Ltd now owns 678,796 shares of the business services provider’s stock valued at $172,078,000 after acquiring an additional 132,796 shares in the last quarter. Atria Investments LLC purchased a new stake in shares of Alliance Data Systems in the fourth quarter valued at about $419,000. Atlantic Trust Group LLC boosted its holdings in shares of Alliance Data Systems by 53.6% in the third quarter. Atlantic Trust Group LLC now owns 572,862 shares of the business services provider’s stock valued at $126,917,000 after acquiring an additional 199,877 shares in the last quarter. Finally, AXA boosted its holdings in Alliance Data Systems by 2.4% during the third quarter. AXA now owns 211,955 shares of the business services provider’s stock worth $46,959,000 after buying an additional 5,046 shares in the last quarter. Institutional investors own 94.59% of the company’s stock.
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About Alliance Data Systems
Alliance Data Systems Corporation is a provider of data-driven marketing and loyalty solutions serving consumer-based businesses in a range of industries. The Company offers a portfolio of integrated outsourced marketing solutions, including customer loyalty programs, database marketing services, end-to-end marketing services, analytics and creative services, direct marketing services, and private label and co-brand retail credit card programs.
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