Alliance Data Systems Corp. (NYSE:ADS) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued on Monday.

According to Zacks, “Alliance Data’s inorganic story seems impressive on strategic buyouts and is banking heavily on the Conversant buyout that has started reaping results. It intends to deploy capital on mergers and acquisitions as well as buybacks in 2016. It has been strengthening its balance sheet with financial flexibility to capitalize on strategic opportunities. The company expects top- and bottom-line growth to gain pace as the year advances with lower yield compression at Card Services, lower loss rates and better performance at Epsilon. All of these factors cushioned the company to raise its 2016 guidance. However, the company’s margin contraction from increasing expenses and dependence on limited clients for revenues are concerns. The company is set to release third quarter results on Oct 20. A Zacks Rank #3 combined with Earnings ESP of 0.24% makes us reasonably confident of an earnings beat.”

Several other equities analysts also recently weighed in on the company. JMP Securities reissued a “buy” rating on shares of Alliance Data Systems Corp. in a research report on Tuesday, October 4th. Atlantic Securities began coverage on Alliance Data Systems Corp. in a research report on Wednesday, October 5th. They set an “overweight” rating and a $270.00 price target for the company. Wedbush began coverage on Alliance Data Systems Corp. in a research report on Thursday, September 8th. They set a “neutral” rating and a $225.00 price target for the company. Deutsche Bank AG reiterated a “buy” rating and issued a $246.00 price target on shares of Alliance Data Systems Corp. in a research note on Thursday, September 1st. Finally, Credit Suisse Group AG cut Alliance Data Systems Corp. from a “neutral” rating to an “underperform” rating and boosted their price target for the stock from $233.00 to $290.00 in a research note on Wednesday, August 17th. One equities research analyst has rated the stock with a sell rating, eight have issued a hold rating, fifteen have given a buy rating and one has issued a strong buy rating to the company. Alliance Data Systems Corp. has a consensus rating of “Buy” and a consensus price target of $268.43.

Analyst Recommendations for Alliance Data Systems Corp. (NYSE:ADS)

Shares of Alliance Data Systems Corp. (NYSE:ADS) opened at 209.77 on Monday. The firm has a 50-day moving average price of $211.67 and a 200 day moving average price of $211.00. Alliance Data Systems Corp. has a one year low of $176.63 and a one year high of $303.75. The firm has a market cap of $12.28 billion, a P/E ratio of 26.11 and a beta of 1.51.

Alliance Data Systems Corp. (NYSE:ADS) last issued its quarterly earnings data on Thursday, July 21st. The company reported $3.68 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.59 by $0.09. The firm earned $1.75 billion during the quarter, compared to analysts’ expectations of $1.64 billion. Alliance Data Systems Corp. had a return on equity of 47.99% and a net margin of 8.85%. Alliance Data Systems Corp.’s revenue was up 16.5% on a year-over-year basis. During the same period in the previous year, the firm posted $3.32 earnings per share. On average, analysts forecast that Alliance Data Systems Corp. will post $16.88 earnings per share for the current fiscal year.

A number of institutional investors have recently added to or reduced their stakes in ADS. Cleararc Capital Inc. boosted its position in Alliance Data Systems Corp. by 0.7% in the second quarter. Cleararc Capital Inc. now owns 1,443 shares of the company’s stock worth $283,000 after buying an additional 10 shares in the last quarter. First Allied Advisory Services Inc. boosted its position in shares of Alliance Data Systems Corp. by 0.6% in the second quarter. First Allied Advisory Services Inc. now owns 2,113 shares of the company’s stock worth $411,000 after buying an additional 12 shares during the last quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. boosted its position in shares of Alliance Data Systems Corp. by 0.3% in the second quarter. Mitsubishi UFJ Kokusai Asset Management Co. Ltd. now owns 8,900 shares of the company’s stock worth $1,744,000 after buying an additional 27 shares during the last quarter. Dynamic Technology Lab Private Ltd boosted its position in shares of Alliance Data Systems Corp. by 2.6% in the second quarter. Dynamic Technology Lab Private Ltd now owns 1,691 shares of the company’s stock worth $331,000 after buying an additional 43 shares during the last quarter. Finally, Victory Capital Management Inc. boosted its position in shares of Alliance Data Systems Corp. by 1.9% in the second quarter. Victory Capital Management Inc. now owns 2,572 shares of the company’s stock worth $504,000 after buying an additional 48 shares during the last quarter. Institutional investors and hedge funds own 91.39% of the company’s stock.

About Alliance Data Systems Corp.

Alliance Data Systems Corporation is a provider of data-driven marketing and loyalty solutions serving consumer-based businesses in a range of industries. The Company offers a portfolio of integrated outsourced marketing solutions, including customer loyalty programs, database marketing services, end-to-end marketing services, analytics and creative services, direct marketing services, and private label and co-brand retail credit card programs.

5 Day Chart for NYSE:ADS

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