RBC Capital Thinks Alliance Data Systems’ Stock is Going to Recover


In a report issued on May 15, Daniel Perlin from RBC Capital maintained a Buy rating on Alliance Data Systems (ADS), with a price target of $46.00. The company’s shares closed last Friday at $38.18, close to its 52-week low of $20.51.

According to TipRanks.com, Perlin is a 5-star analyst with an average return of 13.8% and a 67.2% success rate. Perlin covers the Technology sector, focusing on stocks such as SS&C Technologies Holdings, Bottomline Technologies, and Jack Henry & Associates.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Alliance Data Systems with a $51.11 average price target.

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Based on Alliance Data Systems’ latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $1.38 billion and net profit of $30 million. In comparison, last year the company earned revenue of $1.33 billion and had a net profit of $149 million.

Based on the recent corporate insider activity of 34 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ADS in relation to earlier this year.

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.

Alliance Data Systems Corp. engages in the provision of data-driven and transaction-based marketing and customer loyalty solutions. It operates through the following segments: LoyaltyOne, Epsilon and Card Services. The LoyaltyOne segment provides coalition and short-term loyalty programs. The Epsilon segment offers end-to-end, integrated marketing solutions. The Card Services offers risk management solutions, account origination, funding, transaction processing, customer care, collections, and marketing services for the company’s private label and co-brand credit card programs. The company was founded in 1996 and is headquartered in Columbus, Ohio.

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