Wedbush Starts Alliance Data Systems (ADS) at Neutral

September 9, 2016 7:13 AM EDT
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Price: $239.87 +2.73%

Rating Summary:
    15 Buy, 8 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Wedbush initiates coverage on Alliance Data Systems (NYSE: ADS) with a Neutral rating and a price target of $225.00.

Analyst Moshe Katri commented, "We are initiating coverage with a NEUTRAL rating and $225 price target. We attribute the main driver for the street's re-rating during the past 2 years to M&A integration challenges as well as to the market's concerns over the detrimental impact of the credit cycle. Fundamentally, we believe ADS provides a unique value-added proposition to retailers through bundling private label card issuance, processing and loyalty/analytics solutions. We also believe the significant merchant portfolio wins during the past 2-3 years are a function of the increased relevance of ADS' analytics solutions (bundled with other solutions), as mobile commerce/payments gradually become mainstream. We expect ADS to post 7-10% organic top-line growth and 10-12% adj. EPS growth in the next few years. ADS' stock currently trades at 11.3X WS/consensus FY17E adj. EPS."

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 $217.26 yesterday.



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