Nomura Securities Starts Alliance Data Systems (ADS) at Neutral; Great Business, Looking for Better Entry Point

Nomura Securities initiates coverage on Alliance Data Systems (NYSE: ADS) with a Neutral. PT $103.00.

Nomura analyst, Bill Carcache, said, "ADS operates three distinct businesses: (1) a high-return private label credit card business in the U.S., (2) a full-service, multichannel marketing franchise known as Epsilon and (3) a coalition loyalty program in Canada. Despite our bullish outlook on the fundamentals of these businesses, we believe shares are nearly fully valued at this time and we remain on the sidelines searching for a more attractive entry point. Our FY’12 and FY’13 EPS ests are $8.33 and $9.36, respectively. Our px tgt implies ~11x core 2013 EPS and ~15x 2013 GAAP 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 $103.02 yesterday.

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