Loyal Prospect
Alliance Data Systems is a provider of data-driven marketing and loyalty solutions. They manage the Canadian Air Miles program. 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.
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Due to its impressive track record, ADS is frequently on the best of lists due to their impressive track record and strong cash flow. The correction that we have seen in the broad market has presented many opportunities and ADS is among these. S&P rates the company 4 Stars.
Purple Chips 12 – 18 month target: $325.00
LOW VALUATION IN ALLIANCE DATA SYSTEMS AT $264.00 (ADS-US) HALF POSITION
PURPLE CHIPS TARGET: $325.00 POSITION SIZE: HALF (2.5%) P/E: 19.0X DIV: NIL MKT CAP: $15.1B Debt: $9B RETURN ON CAPITAL: 17.4% EARNINGS YIELD: 5.1% 5 YR EPS Growth rate*:18.3% P/E/G Ratio: 1.04 EPS: $13.89 2016 EST.: $17.25 2017 EST.: $19.44
*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.
