Oppenheimer analyst Glenn Greene reiterated a Buy rating on First Data Corp (NYSE: FDC) on June 12 and set a price target of $25. The company’s shares closed yesterday at $21.50, close to its 52-week high of $22.14.
Greene noted:
“At its Investor Conference, FDC highlighted various growth opportunities and affirmed its FY18 and mid-term guidance and leverage targets. Management’s optimistic growth focus across segments (e.g., 40% of company growing 10%+) was notable to us as FDC sets the stage to move beyond just a de-leveraging story. FDC maintained its mid-term guide, affirmed its 4x leverage target exiting FY19 (with a 3.5-4x mid- term target), and outlined future capital allocation priorities, which could include more aggressive share repurchases and M&A. Management also suggests KKR sees FDC’s growth potential, wants to enjoy the ride, and future share dispositions will likely prove measured. We view FDC as highly attractive at 13x our FY19E EPS (~30% discount to peers) and reiterate our Outperform rating and $25 PT.”
According to TipRanks.com, Greene is a top 25 analyst with an average return of 22.3% and a 86.1% success rate. Greene covers the Technology sector, focusing on stocks such as Jack Henry & Associates, Fidelity National Info, and Total System Services.
Currently, the analyst consensus on First Data Corp is Strong Buy and the average price target is $22.50, representing a 4.7% upside.
In a report issued on June 11, Goldman Sachs also upgraded the stock to Buy with a $25 price target.
See today’s analyst top recommended stocks >>
Based on First Data Corp’s latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $2.28 billion and net profit of $101 million. In comparison, last year the company earned revenue of $2.8 billion and had a net profit of $36 million.
Based on the recent corporate insider activity of 137 insiders, corporate insider sentiment is negative on the stock.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
First Data Corp. engages in the provision of commerce-enabling technology and solutions; and payment technology and services. It operates through the following segments: Global Business Solutions; Global Financial Solutions; and Network and Security Solutions.
