Analysts Grow More Cautious About First Data
First Data posted a fourth-quarter loss after markets closed Wednesday and the stock notched up a new post-IPO low on Thursday.
The largest U.S. initial public offering (IPO) of 2015 was First Data Corp. (NYSE: FDC), which raised just over $2.5 billion in October on the sale of $160 million shares at $16 each. That total came despite the fact that the IPO priced almost 30% below the midpoint of its expected range.
First Data, the world’s largest processor of credit and debit card payments, serving over 6 million business locations across 118 countries, has not traded at or above its IPO price on any day so far this year. The company posted a fourth-quarter loss after markets closed Wednesday and the stock notched up a new post-IPO low on Thursday.
Analyst reaction was a little mixed. Here’s a look at changes following the earnings report:
- Barclays cut its price target from $20 to $14 and has an Overweight rating.
- Credit Suisse raised its rating from Neutral to Outperform but cut the price target from $20 to $12.
- Deutsche Bank cut its price target from $20 to $16 with a Buy rating.
- Mizuho lowered its price target from $20 to $17 with a Buy rating.
- Oppenheimer cut its price target to $16 from $20.
- Stifel reduced its price target from $18 to $12 with a Buy rating.
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Shares recovered somewhat on Friday, closing up 8.9% at $9.44 in a post-IPO range of $8.37 to $17.99. The consensus price target is $16.66.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
