UPDATE: Citigroup Reiterates Neutral Rating, Raises PT for Total System Services

In a company update published earlier today, Citigroup Inc. reiterated its Neutral rating for Total System Services, Inc. (NYSE: TSS) and raised its price target from $20.00 to $23.00.

Citigroup said in its report “We believe Durbin helped TSS' direct merchant business in 1Q, while less than expected BAMS roll-off was also a positive contributor. Overall, we would characterize TSS 1Q as solid and the company continues to benefit from improved underlying fundamentals/growth trends. However, our issue with TSS remains valuation as we believe other processors including GPN (better growth but lower multiple) and WU (similar growth but lower multiple) offer more compelling investment options currently.”

Total System Services, Inc. closed yesterday at $23.20.