Recent Analysts’ Ratings Updates for Alliance Data Systems (ADS)

Several brokerages have updated their recommendations and price targets on shares of Alliance Data Systems (NYSE: ADS) in the last few weeks:

  • 1/29/2018 – Alliance Data Systems was downgraded by analysts at Cowen Inc from an “outperform” rating to a “market perform” rating.
  • 1/26/2018 – Alliance Data Systems had its price target lowered by analysts at Barclays PLC from $310.00 to $298.00. They now have an “overweight” rating on the stock.
  • 1/26/2018 – Alliance Data Systems had its price target raised by analysts at JMP Securities from $285.00 to $310.00. They now have a “market outperform” rating on the stock.
  • 1/26/2018 – Alliance Data Systems had its price target raised by analysts at Oppenheimer Holdings Inc. from $219.00 to $227.00. They now have an “underperform” rating on the stock.
  • 1/26/2018 – Alliance Data Systems was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $283.00 price target on the stock. According to Zacks, “Alliance Data’s fourth-quarter bottom line beat expectation on strong segmental performance. Organic growth remained a key strength at Alliance Data, indicated by its continued revenue growth. 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. A strong balance sheet position enables the company deploy capital in growth initiatives as well as shareholder-friendly moves. A lowered corporate tax rate, reducing net deferred tax liabilities and future cash tax will help generate additional $100 million in free cash flow. For 2018, core EPS is expected between $22.50 and $23.00 on $8.35 billion revenues. However, increasing expenses and dependence on limited clients for revenues raise concerns. Shares of Alliance Data have underperformed the industry in a year.”
  • 1/26/2018 – Alliance Data Systems had its price target lowered by analysts at BMO Capital Markets to $250.00. They now have a “market perform” rating on the stock.
  • 1/26/2018 – Alliance Data Systems was upgraded by analysts at Edward Jones from a “hold” rating to a “buy” rating.
  • 1/18/2018 – Alliance Data Systems had its “buy” rating reaffirmed by analysts at Piper Jaffray Companies. They now have a $368.00 price target on the stock.
  • 1/17/2018 – Alliance Data Systems was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. 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 #3 increases the predictive power of a beat, but combined with the Earnings ESP of -1.27%, makes prediction difficult.”
  • 1/17/2018 – Alliance Data Systems had its “underperform” rating reaffirmed by analysts at Credit Suisse Group AG. They now have a $218.00 price target on the stock, up previously from $193.00.
  • 1/16/2018 – Alliance Data Systems was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $310.00 price target on the stock. 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.”
  • 1/10/2018 – Alliance Data Systems was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. 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 #3 increases the predictive power of a beat, but combined with the Earnings ESP of -0.94%, makes prediction difficult.”
  • 1/9/2018 – Alliance Data Systems had its “hold” rating reaffirmed by analysts at Robert W. Baird. They now have a $270.00 price target on the stock.
  • 1/8/2018 – Alliance Data Systems had its “equal weight” rating reaffirmed by analysts at Barclays PLC. They now have a $298.00 price target on the stock, up previously from $278.00.
  • 1/5/2018 – Alliance Data Systems was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $296.00 price target on the stock. 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 -0.94%, makes prediction difficult.”
  • 1/4/2018 – Alliance Data Systems had its “buy” rating reaffirmed by analysts at Royal Bank of Canada. They now have a $293.00 price target on the stock.
  • 1/3/2018 – Alliance Data Systems was upgraded by analysts at Barclays PLC from an “equal weight” rating to an “overweight” rating. They now have a $310.00 price target on the stock, up previously from $265.00.
  • 1/2/2018 – Alliance Data Systems was given a new $304.00 price target on by analysts at Stephens. They now have a “buy” rating on the stock.

Alliance Data Systems Co. (ADS) traded up $4.73 on Monday, hitting $245.40. The stock had a trading volume of 127,386 shares, compared to its average volume of 665,368. The firm has a market cap of $13,296.70, a price-to-earnings ratio of 17.37, a P/E/G ratio of 0.86 and a beta of 1.71. Alliance Data Systems Co. has a 12 month low of $209.00 and a 12 month high of $278.33. The company has a current ratio of 1.91, a quick ratio of 2.09 and a debt-to-equity ratio of 8.02.

Alliance Data Systems (NYSE:ADS) last released its earnings results on Thursday, January 25th. The business services provider reported $6.10 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.72 by $1.38. The company had revenue of $2.11 billion for the quarter, compared to analyst estimates of $2.15 billion. Alliance Data Systems had a return on equity of 66.17% and a net margin of 10.22%. Alliance Data Systems’s quarterly revenue was up 15.2% on a year-over-year basis. During the same period in the prior year, the firm posted $4.67 EPS. equities analysts anticipate that Alliance Data Systems Co. will post 21.49 EPS for the current year.

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 20th. Stockholders of record on Wednesday, February 14th will be issued a dividend of $0.57 per share. This is a positive change from Alliance Data Systems’s previous quarterly dividend of $0.52. This represents a $2.28 annualized dividend and a dividend yield of 0.93%. The ex-dividend date of this dividend is Tuesday, February 13th. Alliance Data Systems’s dividend payout ratio is 14.72%.

In related news, CFO Charles L. Horn sold 2,128 shares of the company’s stock in a transaction on Thursday, November 30th. The stock was sold at an average price of $235.00, for a total transaction of $500,080.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 2.60% of the stock is owned by corporate insiders.

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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