Courtesy of Benzinga.
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.
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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