UPDATE: Nomura Reiterates on Total System Services Following 3Q13 Cash EPS Report

In a report published Wednesday, Nomura analyst Tulu Yunus reiterated a Neutral rating on

, and raised the price target from $24.00 to $29.00. In the report, Nomura noted, “TSS reported 3Q13 cash EPS of $0.49, relative to our / consensus estimates of $0.51 / $0.46. Excluding a non-recurring tax benefit of ~$0.01/sh, we estimate ‘core' EPS came in at $0.48. This quarter's results were characterized by lower-than-expected revenues (particularly in International and Merchant Services) and margins, offset by lower-than-expected interest and tax expenses. Broadly speaking, all businesses excluding Merchant Services are trending in the right direction. TSS is hard at work to delever its balance sheet in an effort to make room for additional capital actions in the near future. At its current pace, we expect the company to reach its target leverage range of ~2.0x by 2Q14. We're raising our PT from $24 to $29 to reflect a move towards a cash EPS-based valuation. Our revised $29 PT reflects a ~14x multiple on our 2014 EPS estimate.” Total System Services closed on Tuesday at $30.65.