UPDATE: Jefferies Initiates Total Systems Services at Buy

Jefferies is out with its report today on Total System Services TSS, initiating TSS at Buy. In a note to clients, Jefferies writes, "After weathering the steep economic downturn and resulting impact on its core bank customers, TSS has started to reap benefits from a more favorable consumer-spending environment (especially in credit) which is driving improvement in key metrics. We believe TSS's diversification strategy into merchant acquiring is also a positive, as is the prospect for medium/longterm margin expansion. We are initiating coverage of TSS with a Buy rating and $21 price target." Shares of TSS closed Monday at $17.89, up 0.73% from Friday's close.