Analysts at UBS highlighted some positive facets of the company on Tuesday when they reiterated their “Buy” rating and raised their price target from $36 to $40, 9.4 percent above Monday’s closing price. The analysts set 2013 and 2014 earnings growth targets of 20 and 19 percent, respectively.
“With our new target, we assume an 18% EPS growth rate over the next 3 years due to accelerated unit growth, and impending customer loyalty/mobile payment initiatives. We continue to believe investors will be willing to pay a premium multiple for companies that exhibit such highly visible and consistent EPS growth,” commented the analysts.
Here’s what that EPS growth looks like on an annual basis:
|Revenue ($) in millions||538.07||577.14||628.20|
|Diluted EPS ($)||0.55||0.42||0.35|
And on a quarterly basis:
|Quarter||Sep. 30, 2011||Dec. 31, 2011||Mar. 31, 2012||Jun. 30, 2012||Sep. 30, 2012|
|Revenue ($)in millions||163.51||168.50||152.37||172.39||171.72|
At a glance, not so consistent and not so upwardly mobile — EPS has actually fallen for each of the past three years, and growth has bounced up and down on a quarterly basis. But the platform for consistent growth is there…