Alliance Data Shares Advance On Positive Trends

DALLAS (AP) — Shares Alliance Data Systems Corp. advanced Wednesday after the company indicated that credit losses at its private label credit card banking subsidiary were easing and financing and acquisition activity should help the division the remainder of this year and 2010.

Shares in the marketing and transactions services provider rose $2.37, or 4 percent, to $62.43 in afternoon trading. They've traded between $22.76 and $66.15 in the past year.

The company said the credit loss rate for the private label credit card banking division for August was 9.7 percent, the same as the previous month.

The private label credit portfolio grew at 12 percent, slightly ahead of management's 10 percent guidance.

The record number of new customer sign-ups over the past two years is setting up the company for more favorable year-over-year portfolio growth comparisons, said Raymond James & Associates Inc. analyst Wayne Johnson, in an investor note.

He reiterated his "outperform" rating and set a $60 price target on the stock.