J.P. Morgan Raises Price Target On Alliance Data To $98

According to J.P. Morgan, Alliance Data ADS reported good 2Q11 results. J.P. Morgan said that the core EPS of $1.75 was nicely ahead of prior guidance ($1.60) and JPM/Street estimates ($1.73/$1.67), but the magnitude of the beat and raise missed bullish expectations (shares underperformed the broader Mkt by 430bps yesterday). “Our PT applies an 11x multiple (unchanged) to our new CY12 estimate of $8.89. We rate ADS Neutral, as shares trade towards the high-end of our fair value estimate.” Alliance Data closed yesterday at $96.48.