NEW YORK (TheStreet) -- Shares of Total System Services (TSS) are down 0.38% to $31.60 after Sterne Agee initiated coverage on the company, which processes merchant acquirers and issues bank credit cards, with a "neutral" rating and a $32 price target due to conflicts in both international and prepaid merchant processing.
"While account growth in the North American segment has improved, and the risk of client attrition appears to have subsided, other cross currents have emerged in merchant processing, international, and prepaid that are keeping us on the sidelines," said analyst Thomas C. McCrohan.
The firm's $32 price target would suggest a potential upside of 0.57% from the stocks previous close.
TheStreet Ratings team rates TOTAL SYSTEM SERVICES INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TOTAL SYSTEM SERVICES INC (TSS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."