Transaction Systems Architects (Nasdaq: TSAI) rose 57 percent Thursday after an analyst praised its plans for expansion into new high-growth markets.
Shares in the company, which supports software products and services focused on facilitating electronic payments and commerce, were up 15 7/8 to 43 5/8, bounding over the company's previous 52-week high of 42 1/4.
Credit Suisse First Boston said it had raised its rating on e-commerce software maker to "strong buy" from "buy" and said company dominates the "plumbing infrastructure" of the electronic payments industry. CS First Boston set a near-term target price target of $60 on the stock, and said it believes company will spin off its Internet banking assets.
Transaction Systems Architects had announced plans to leverage its newer lines of business in order to drive higher overall growth. The company's new CEO, David C. Russell, said the company has created new business units that have higher-growth potential than the company's core consumer banking business. Russell said the goal would be to give these new units the capital to grow.
Specific examples include the company's Systems Solutions Group, which grew well last year, and is well positioned in the e-commerce "plumbing" arena. The company also has other, more nascent units, in areas like internet banking, e-commerce payments and smartcard systems, it said.