JMP Securities analyst David Scharf lowered his price target on Alliance Data to $125 after its Q3 earnings miss and a cut in its FY19 guidance, saying the new management has used this reporting quarter to reset expectations and also communicate its operating cost reductions. The analyst notes that he also would like to see the company sell its Loyalty businesses to further simplify its investment story, but he contends that Alliance Data management is now presenting a "more realistic" set of growth expectations. Scharf keeps his Outperform rating on Alliance data, with his new price target modeling a 6-times forward earnings multiple.