SunTrust Robinson Humphrey Upgrades TNS (TNS) to Buy

May 15, 2008 7:59 AM EDT

SunTrust Robinson Humphrey upgrades TNS (NYSE: TNS) from Neutral to Buy with a $29 price target.

The firm said, "It is our opinion that TNS is well positioned to benefit from a global secular shift to electronic transactions and enhanced financial markets connectivity. In addition, the company's historically commoditized domestic TSD business should enjoy improving organic revenue growth and profitability as consumers adopt VoIP technology, increasingly included by telecom providers in bundled connectivity offerings. These demand drivers, coupled with apparently improved management focus and improving execution, will likely support long-term sustainable high single-digit percentage organic revenue growth and improving profitability and returns. We believe this will translate into ongoing valuation expansion for the shares."

TNS, located in Reston, VA, provides business-critical data communications services to processors of credit card, debit card and ATM transactions worldwide. The company also provides secure data and voice network services to the global financial services industry.

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