After KeyBanc and Stephens gave Total System Services (NYSE: TSS) a Buy rating last month, the company received another Buy, this time from Oppenheimer. Analyst Glenn Greene reiterated a Buy rating on Total System Services today and set a price target of $110. The company’s shares closed yesterday at $86.98.
Greene observed:
“TSS reported a solid 4Q with net revenue growth of ~10.6% Y/Y in CC led by 7% CC Issuer growth and 18% (9-10% organic, “ex noise”) Merchant growth. TSS provided a solid FY19 outlook (EPS mid-point ~100bps below our estimate/consensus) calling for 5-7% net revenue growth (includes 50bps FX and ~100bps net CFPB headwinds) and EPS of $4.75-4.90 (vs. prior consensus of $4.87), or 6-10% EPS growth (reflects ~250bps CFPB drag), which could prove conservative. We are encouraged by TSS’s continued solid and broad-based organic growth, and its expanding Issuer pipeline. Shares trade at ~16x our revised FY20E EPS and appear attractive. We anticipate aggressive capital deployment in CY19. Reiterate Outperform rating and $110 price target.”
According to TipRanks.com, Greene is a top 25 analyst with an average return of 18.0% and a 75.3% success rate. Greene covers the Technology sector, focusing on stocks such as Jack Henry & Associates, Fidelity National Info, and Black Knight Inc.
Total System Services has an analyst consensus of Moderate Buy, with a price target consensus of $99.50, representing a 14.4% upside. In a report issued on January 23, Stephens also reiterated a Buy rating on the stock with a $96 price target.
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The company has a one-year high of $100.39 and a one-year low of $75.58. Currently, Total System Services has an average volume of 1.45M.
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Total System Services, Inc. provides electronic payment processing services to banks and other financial institutions. It operates through the following segments: Issuer Solutions, Merchant Solutions, Netspend, and Corporate Administration and Other.
