ADS - Alliance Data Systems outlines long-term targets as it preps for loyalty spinoff

Alliance Data Systems (ADS) expects return on equity in mid-to-high 20s, according to its Investor Day presentation in an SEC filing.ADS's card services unit's ROE was 27% in Q1 2021, up from 16% in Q4 2020. Recall that the company plans to spin off its loyalty business to shareholders by the end of the year.Aims for positive operating leverage in 2022 and beyond, as it had said in its Q1 earnings release.Targets high-single-digit annual receivables, exceeding $20B in 2023.Also aims to attain net loss rate less than 6%.Targeting tangible common equity and leverage ratios in line with its peers.SA contributor Gen Alpha lays out the bullish case for ADS.

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Alliance Data Systems outlines long-term targets as it preps for loyalty spinoff