Cowen Maintains Outperform on Alliance Data Systems (ADS) Following a Competitive Data Analysis

Cowen maintains an Outperform rating and $320 price target on Alliance Data Systems (NYSE: ADS) following a competitive data analysis. Analyst Moshe Katri believes that ADS provides the only practical alternative to the traditional networks (AXP, MA, V).

Katri commented on ADS, saying, "In 2014, ADS' share of outstandings posted the strongest growth (32.4%) among its peers, with market share expanding from 8.43% to 10.36% of total mix. The company is clearly taking share from the top 2 leaders (Synchrony Financial and Citi Retail Services posted share losses). ADS' gains were driven by new private label card portfolio wins from Overstock.com, Mayors Jewelers, JD Williams, International Diamond Distributors and Meijer (acquisition). The company also posted impressive growth in purchase volume, accounts and cards: 1. ADS' purchase volumes growth (24%) was the second fastest, trailing the 6th largest player (TD Retail Card Services (with 29% growth) while its purchase volume share expanded from last year's 9.06% to 10.27%; 2. Active accounts (35.675MM) accounted for 23% of total active accounts, posting 8% YOY growth, tied at the top spot with TD Retail Card Services; and 3. Cards on file (90.729MM; 26.4% of mix) posted 10% YOY growth, the second strongest among its peers (trailing Wells Fargo Retail Services)."

For an analyst ratings summary and ratings history on Alliance Data Systems click here. For more ratings news on Alliance Data Systems click here.

Shares of Alliance Data Systems closed at $297.48 yesterday.

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