Alliance Data Systems Corporation (ADS) Stock Rating Upgraded by Zacks Investment Research

Alliance Data Systems Corporation (NYSE:ADS) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Tuesday. The firm currently has a $288.00 price objective on the business services provider’s stock. Zacks Investment Research‘s target price indicates a potential upside of 11.22% from the company’s current price.

According to Zacks, “Alliance Data Systems 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. Solid receivables growth in Card Services, along with strength in LoyaltyOne and Epsilon segments, should continue to drive top-line growth. For 2017, the company expects Core EPS is expected at $18.50 on $7.7 billion revenues. However, we remain apprehensive owing to several challenges that limit profitability of the company. These include increasing expenses and dependence on limited clients for revenues. With respect to quarterly results, Alliance Data Systems’ first quarter earnings met our expectations. Though Epsilon and Card Services delivered solid performance results at LoyaltyOne were weak. Also, shares of the company have underperformed the Zacks categorized Financial Transaction Services industry, year to date.”

A number of other brokerages have also recently weighed in on ADS. Compass Point upgraded Alliance Data Systems Corporation from a “sell” rating to a “neutral” rating and upped their price target for the company from $190.00 to $200.00 in a research report on Thursday, May 25th. Oppenheimer Holdings, Inc. initiated coverage on Alliance Data Systems Corporation in a research report on Tuesday, May 16th. They issued a “sell” rating and a $185.00 price target on the stock. TheStreet upgraded Alliance Data Systems Corporation from a “c” rating to a “b” rating in a research report on Thursday, April 20th. Wedbush reiterated a “neutral” rating and issued a $252.00 price target (up from $225.00) on shares of Alliance Data Systems Corporation in a research report on Tuesday, June 6th. Finally, CIBC reiterated an “underperform” rating on shares of Alliance Data Systems Corporation in a research report on Tuesday, April 11th. Three investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and ten have assigned a buy rating to the company. The stock currently has a consensus rating of “Hold” and a consensus target price of $244.57.

Analyst Recommendations for Alliance Data Systems Corporation (NYSE:ADS)

Alliance Data Systems Corporation (NYSE ADS) opened at 258.94 on Tuesday. Alliance Data Systems Corporation has a 12-month low of $185.02 and a 12-month high of $266.25. The firm has a 50-day moving average of $245.87 and a 200-day moving average of $240.42. The stock has a market capitalization of $14.42 billion, a price-to-earnings ratio of 34.37 and a beta of 1.78.

Alliance Data Systems Corporation (NYSE:ADS) last announced its quarterly earnings results on Thursday, April 20th. The business services provider reported $3.91 earnings per share for the quarter, beating analysts’ consensus estimates of $3.64 by $0.27. Alliance Data Systems Corporation had a return on equity of 57.03% and a net margin of 6.88%. The firm had revenue of $1.88 billion for the quarter, compared to analysts’ expectations of $1.81 billion. During the same period in the prior year, the business posted $3.84 earnings per share. The business’s revenue was up 12.1% compared to the same quarter last year. Equities research analysts forecast that Alliance Data Systems Corporation will post $18.56 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which was paid on Monday, June 19th. Stockholders of record on Monday, May 15th were paid a dividend of $0.52 per share. This represents a $2.08 annualized dividend and a dividend yield of 0.80%. The ex-dividend date of this dividend was Thursday, May 11th. Alliance Data Systems Corporation’s dividend payout ratio (DPR) is presently 27.55%.

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Institutional investors have recently modified their holdings of the stock. Johnson Financial Group Inc. raised its position in shares of Alliance Data Systems Corporation by 9.8% in the first quarter. Johnson Financial Group Inc. now owns 426 shares of the business services provider’s stock valued at $106,000 after buying an additional 38 shares during the period. Benjamin F. Edwards & Company Inc. raised its position in shares of Alliance Data Systems Corporation by 68.6% in the first quarter. Benjamin F. Edwards & Company Inc. now owns 462 shares of the business services provider’s stock valued at $115,000 after buying an additional 188 shares during the period. Quadrant Capital Group LLC raised its position in shares of Alliance Data Systems Corporation by 0.8% in the first quarter. Quadrant Capital Group LLC now owns 482 shares of the business services provider’s stock valued at $116,000 after buying an additional 4 shares during the period. FNY Partners Fund LP raised its position in shares of Alliance Data Systems Corporation by 163.0% in the first quarter. FNY Partners Fund LP now owns 526 shares of the business services provider’s stock valued at $130,000 after buying an additional 326 shares during the period. Finally, Invictus RG raised its position in shares of Alliance Data Systems Corporation by 189.7% in the first quarter. Invictus RG now owns 565 shares of the business services provider’s stock valued at $141,000 after buying an additional 370 shares during the period. 95.58% of the stock is currently owned by institutional investors and hedge funds.

Alliance Data Systems Corporation 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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