Oppenheimer Believes First Data Corp (NYSE: FDC) Still Has Room to Grow

By Austin Angelo

In a report released today, Glenn Greene from Oppenheimer reiterated a Buy rating on First Data Corp (NYSE: FDC), with a price target of $19. The company’s shares opened today at $16.57, close to its 52-week high of $17.02.

Greene commented:

“First Data entered a definitive agreement to acquire CardConnect (CCN)for cash consideration of $750M. The acquisition should prove modestly accretive in the first year post close, pre synergies. CardConnect improves FDC’s positioning in the integrated ISV and ERP channels, and should accelerate N. America GBS growth while improving aggregate retention. We estimate an ~11x FY18E EBITDA multiple for CCN (includes $10M of cost synergies), which appears attractive considering CCN’s ~20% organic growth profile. The transaction will have a nominal impact on FDC’s de-leveraging plan (only increases leverage by 0.2x); FDC affirmed its ~4x leverage target exiting FY19. Trading at ~10.5x our FY18E EBITDA and ~11x our FY18E EPS, we think FDC shares remain highly attractive.”

According to TipRanks.com, Greene is a top 25 analyst with an average return of 18.6% and a 82.6% success rate. Greene covers the Technology sector, focusing on stocks such as Black Knight Financial Services, Automatic Data Processing, and Jack Henry & Associates.

First Data Corp has an analyst consensus of Moderate Buy, with a price target consensus of $18.

First Data Corp’s market cap is currently $15.28B and has a P/E ratio of 29.71. The company has a book value ratio of 11.2073.

Based on the recent corporate insider activity of 52 insiders, corporate insider sentiment is neutral on the stock.

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First Data Corp. provides commerce-enabling technology and solutions. It provides secure and innovative payment technology and services. The company operates through three business segments: Global Business Solutions, Global Financial Solutions and Network & Security Solutions. The Global Business Solutions segment provides retail point-of-sale merchant acquiring and eCommerce services. This segment also provides next generation offerings, such as mobile payment services, web store-in-a-box solutions and cloud-based clover point-of-sale operating system. The Global Financial Solutions segment provides credit solutions for bank and non-bank issuers, such as credit and retail private-label card processing; and licensed financial software systems, such as VisionPLUS bank processing application and lending solutions. This segment also offers related services, including card personalization and embossing, statement printing, client service and remittance processing. The Network & Security Solutions segment provides EFT network solutions, such as STAR Network and debit card processing solutions. It also offers stored value network solutions, including money network, ValueLink, Gyft, and transaction wireless; and security and fraud solutions, such as TransArmor and TeleCheck. The company’s other services include mobile payments, eCommerce and prepaid solutions, as well as payment processing, fraud protection and authentication solutions, online banking, check guarantee and verification services and point-of-sale services to its customers. First Data was founded in 1971 and is headquartered in Atlanta, GA.