Alliance Data Systems (ADS) Upgraded to Buy by Zacks Investment Research

Alliance Data Systems (NYSE:ADS) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Friday, January 5th. The firm presently has a $296.00 price objective on the business services provider’s stock. Zacks Investment Research‘s price objective points to a potential upside of 7.10% from the company’s current price.

According to Zacks, “Alliance Data remains well-positioned for growth from significant opportunities owing to the current trend in consumer-based businesses, shifting their marketing spends to data-driven marketing strategies. It has made several strategic acquisitions to grow inorganically. Solid receivables growth in Card Services along with strength in LoyaltyOne and Epsilon segments should continue to drive top-line growth. For 2017, core EPS is expected at $18.10 on $7.8 billion revenues and for 2018, core EPS is projected at $21.50 on revenues of $8.7 billion. However, increasing expenses and dependence on limited clients for revenues, raise concerns. Shares of Alliance Data have underperformed the industry in a year. It is set to release fourth quarter results on Jan 25. A Zacks Rank #2 increases the predictive power of a beat, but combined with the Earnings ESP of -0.94%, makes prediction difficult.”

Several other research analysts have also recently issued reports on the company. Royal Bank of Canada reiterated a “buy” rating and issued a $293.00 price objective on shares of Alliance Data Systems in a research report on Thursday, January 4th. Stephens set a $304.00 price target on Alliance Data Systems and gave the company a “buy” rating in a research report on Tuesday, January 2nd. Barclays upgraded Alliance Data Systems from an “equal weight” rating to an “overweight” rating and raised their price target for the company from $265.00 to $310.00 in a research report on Wednesday, January 3rd. BMO Capital Markets reiterated a “hold” rating and set a $235.00 price objective on shares of Alliance Data Systems in a research report on Wednesday, November 22nd. Finally, Oppenheimer set a $208.00 price objective on Alliance Data Systems and gave the stock a “sell” rating in a research report on Thursday, October 26th. Four equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and ten have assigned a buy rating to the company. Alliance Data Systems has a consensus rating of “Hold” and a consensus target price of $266.76.

Alliance Data Systems (ADS) opened at $276.37 on Friday. The company has a quick ratio of 2.09, a current ratio of 2.11 and a debt-to-equity ratio of 9.53. The stock has a market capitalization of $15,269.08, a P/E ratio of 29.31, a P/E/G ratio of 0.99 and a beta of 1.79. Alliance Data Systems has a fifty-two week low of $209.00 and a fifty-two week high of $278.33.

Alliance Data Systems (NYSE:ADS) last posted its quarterly earnings data on Thursday, October 19th. The business services provider reported $5.35 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $4.80 by $0.55. Alliance Data Systems had a return on equity of 62.95% and a net margin of 7.09%. The business had revenue of $1.91 billion during the quarter, compared to the consensus estimate of $1.97 billion. During the same period in the prior year, the company earned $4.74 earnings per share. The company’s revenue was up 1.4% compared to the same quarter last year. equities analysts anticipate that Alliance Data Systems will post 17.08 EPS for the current fiscal year.

In other news, CFO Charles L. Horn sold 2,128 shares of the business’s stock in a transaction that occurred on Thursday, November 30th. The stock was sold at an average price of $235.00, for a total value of $500,080.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 2.60% of the stock is currently owned by insiders.

A number of hedge funds have recently made changes to their positions in ADS. Fiduciary Trust Co. acquired a new position in Alliance Data Systems during the 2nd quarter worth $108,000. ETF Managers Group LLC acquired a new position in Alliance Data Systems during the 2nd quarter worth $128,000. WFG Advisors LP boosted its position in Alliance Data Systems by 135.9% during the 2nd quarter. WFG Advisors LP now owns 677 shares of the business services provider’s stock worth $174,000 after acquiring an additional 390 shares during the period. Commonwealth Bank of Australia lifted its holdings in shares of Alliance Data Systems by 66.6% in the second quarter. Commonwealth Bank of Australia now owns 728 shares of the business services provider’s stock valued at $185,000 after buying an additional 291 shares during the period. Finally, Simonbaker & Partners LLC acquired a new stake in shares of Alliance Data Systems in the second quarter valued at $202,000. Institutional investors own 94.59% of the company’s stock.

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Alliance Data Systems Company Profile

Alliance Data Systems Corporation is a provider of data-driven marketing and loyalty solutions serving consumer-based businesses in a range of industries. The Company offers a portfolio of integrated outsourced marketing solutions, including customer loyalty programs, database marketing services, end-to-end marketing services, analytics and creative services, direct marketing services, and private label and co-brand retail credit card programs.

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