Piper Jaffray Incrementally Confident In ADS, CSE, DLLR, and PRAA

At a recent Financial Services Summit in Boston, Piper Jaffray said that it is most incrementally confident in the following companies: “Alliance Data Systems ADS: Improving fundamentals. Growth and cash flow still underappreciated. Management continues to focus on reducing controversy in the name.” “CapitalSource CSE: Management is very confident in credit trends. We are incrementally more confident that CSE is fully reserved. Shrinkage of parent could be faster than what the Street expects, allowing visibility of return on capital to shareholders. High confidence in origination levels in bank.” “Dollar Financial DLLR: Core business trends remain strong, especially in the U.K. and Canada. Increased confidence in ability to accretively deploy excess capital in the near term.” “Portfolio Recovery Associates PRAA: Pricing is up from the rock bottom levels but remains very attractive. Higher prices may lead to more supply. Operating margin expansion likely to continue as bankruptcy business grows. Regulatory concerns appear to be moderating. Fee-for-service businesses have accelerating expansion opportunities, especially in the government services. Management remains confident in cash collection trends.” Alliance Data Systems currently trades at $61.54; CapitalSource trades at $6.37; Dollar Financial trades at $25.44; and Portfolio Recovery Associates trades at $65.02.