In a report released yesterday, Glenn Greene from Oppenheimer reiterated a Buy rating on Total System Services (NYSE: TSS), with a price target of $110. The company’s shares closed yesterday at $92.63.
Greene observed:
“TSS reported another strong quarter with net revenue growth of ~13% Y/Y in CC or high single-digit organic, led by 8.8% (~7% core growth) Issuer growth and 23% (low double-digit organic) Merchant growth. Reflecting the upside quarter and strong visibility, TSS again raised its FY18 outlook, calling for 11-13% (increased 100bps at low end) net revenue growth (includes perhaps 300bps benefit from acquisition/accounting adjustments) and EPS of $4.41-4.47 (from $4.30-$4.40) and approximates low double-digit growth adjusted for tax effects, ASC 606, and Cayan acquisition). We are encouraged by TSS’s continued solid and broadbased organic growth, and its apparently expanding Issuer pipeline. Shares trade at ~16.5x our revised FY20E EPS and appear attractive. Reiterate Outperform rating and $110 price target.”
According to TipRanks.com, Greene is a top 25 analyst with an average return of 20.6% and a 80.8% success rate. Greene covers the Technology sector, focusing on stocks such as Jack Henry & Associates, Fidelity National Info, and Global Payments Inc.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Total System Services with a $102.85 average price target.
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Total System Services’ market cap is currently $16.9B and has a P/E ratio of 26.32. The company has a Price to Book ratio of 6.75.
Based on the recent corporate insider activity of 55 insiders, corporate insider sentiment is negative on the stock. Most recently, in August 2018, Patricia Watson, the Senior EVP and CIO of TSS sold 15,332 shares for a total of $1,430,422.
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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.
