Deutsche Bank Sets Expectations On Alliance Data Ahead Of 3Q14 Results


In a research note issued today, Deutsche Bank analyst Ashish Sabadra reiterated a Buy rating on Alliance Data (NYSE:ADS) with a $330 price target, ahead of the company’s third quarter earnings, which will be released on October 16, 2014.

Sabadra observed, “We estimate ADS to report revenues of $1,304m (19% Y/Y) and EPS of $3.26 driven by 21% growth in receivables. We expect ADS to guide conservatively for FY15, potentially below the street est, but continue to beat and raise guidance eventually delivering mid-to-high teens organic EPS growth with $0.50 of EPS accretion from CNVR acquisition. More importantly, after mid-single digit EBITDA growth in 1H14, the company expects to deliver double digit EBITDA growth in 2H14 and FY15 as the investments normalize and operating leverage from the ramp-up of new clients.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ashish Sabadra has a total average return of 11.1% and a 66.7% success rate. Sabadra has a 10.4% average return when recommending ADS, and is ranked #1186 out of 3315 analysts.

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