Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Goldman: Total System Services Shares No Longer A Bargain, But Still Room For Upside

Courtesy of Benzinga.

Goldman: Total System Services Shares No Longer A Bargain, But Still Room For Upside

Total System Services, Inc. (NYSE: TSS) announced a quarterly dividend of 13 cents per share payable Jan. 2. 

The Analyst

Goldman Sachs’ James Schneider downgraded Total System Services from Buy to Neutral and maintained the $80 price target.

The Thesis

Schneider decided to downgrade the stock because it’s approaching Goldman’s price target, he said. (See Schneider’s track record here.) 

Total System Services has around 5 percent upside potential, the analyst said.

The company is in a good position to win medium-sized card issuing contracts in the coming quarters, driving incremental upside to Street estimates, Schneider said. He added that he expects margin expansion in 2018.  

The stock is no longer trading at a substantial discount to its peers, but it is capable of modest multiple expansion, Schneider said. New card issuer wins and stronger margin performance are upside risks, while slower growth and consumer credit cyclicality are downside risks, he said. 

The Price Action

Total System Services was trading nearly flat at $76.59 at the time of publication. It has gained around 30 percent in the last six months and more than 50 percent year-to-date.

Related Link:

Analyst: Fintech Is A Big Winner From Tax Reform, 5 Stocks To Play 

Latest Ratings for TSS

Date Firm Action From To
Dec 2017 Goldman Sachs Downgrades Buy Neutral
Oct 2017 Jefferies Maintains Hold
Oct 2017 Citigroup Maintains Buy

View More Analyst Ratings for TSS


View the Latest Analyst Ratings

Posted-In: Goldman Sachs James SchneiderAnalyst Color Downgrades Price Target Analyst Ratings


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!