NEW YORK (TheStreet) -- Barclays initiated coverage on Vantiv (VNTV) with an "overweight" rating and a $40 price target. The firm said the company's recent acquisition of Mercury will improve revenue mix.
The stock closed at $33.68 on Thursday.
Separately, TheStreet Ratings team rates VANTIV INC as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate VANTIV INC (VNTV) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, notable return on equity, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 16.1%. Since the same quarter one year prior, revenues slightly increased by 8.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the IT Services industry average, but is less than that of the S&P 500. The net income increased by 7.7% when compared to the same quarter one year prior, going from $26.12 million to $28.14 million.
- VANTIV INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, VANTIV INC increased its bottom line by earning $0.88 versus $0.45 in the prior year. This year, the market expects an improvement in earnings ($1.90 versus $0.88).
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the IT Services industry and the overall market on the basis of return on equity, VANTIV INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- 43.64% is the gross profit margin for VANTIV INC which we consider to be strong. Regardless of VNTV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 5.23% trails the industry average.
- You can view the full analysis from the report here: VNTV Ratings Report