Nomura Securities Reiterates Buy on Total System Services (TSS)

September 30, 2016 8:35 AM EDT
Get Alerts TSS Hot Sheet
Price: $48.03 +0.92%

Rating Summary:
    12 Buy, 11 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 31 | New: 42
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Nomura Securities reiterated a Buy rating and $58.00 price target on Total System Services (NYSE: TSS). An analysis showed that FY17 could see a sizable re-acceleration helped by waning headwinds, easing compares and cross-selling. Nomura is expecting a better than expected ex. de-conversion FY17 growth potential of +9% vs. the consensus of +6%.

Analyst Dan Dolev commented, "Beset by decelerating organic growth in North America (~40% of rev.), anniversary of BofA/EMV, prepaid de-conversion headwinds, and a looming CFPB overdraft rule, the stock’s poor performance YTD (-10% rel. to the S&P) is somewhat understandable. But is current performance indicative of future results? Our analysis shows that FY17 could see sizable re-acceleration helped by waning headwinds, easing compares and cross-selling. At NetSpend, the CFPB dragging its feet on the overdraft rule allows TSS to explore offsetting revenue streams. Plus, a well-communicated worst-case EPS drag may in fact culminate in a sigh of relief when the rule is announced. FY16 would likely be remembered as a rank and file year, but it also sets the stage for a favorable future risk/reward. Raising Est. Buy."

For an analyst ratings summary and ratings history on Total System Services click here. For more ratings news on Total System Services click here.

Shares of Total System Services closed at $46.72 yesterday.



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