Nomura Securities Starts First Data Corporation (FDC) at Neutral

Nomura Securities initiates coverage on First Data Corporation (NYSE: FDC) with a Neutral rating and a price target of $14.00.

Analyst Dan Dolev commented, "We initiate coverage of First Data Corp (FDC) with a Neutral rating and a $14 target price. FDC’s dominance in the payment ecosystem (No.1 acquirer) is attractive, but we see just as many hurdles (deteriorating yield, chronic attrition, static distribution channels, leverage slowing M&A) as opportunities (a solid yet commoditized Clover offering, STAR network expansion). Divesting GFS (issuer processing) could ease FDC’s $19bn debt load and steer management’s focus toward merchant acquiring, where accelerating top-line and margin growth could be the most critical catalysts. We would look for progress on those fronts before becoming more positive on the stock."

For an analyst ratings summary and ratings history on First Data Corporation click here. For more ratings news on First Data Corporation click here.

Shares of First Data Corporation closed at $13.21 yesterday.

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