In a report released today, David Scharf from JMP Securities maintained a Buy rating on Atlanticus Holdings (ATLC – Research Report), with a price target of $72.00.
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David Scharf has given his Buy rating due to a combination of factors related to Atlanticus Holdings’ strategic positioning and market conditions. The company is poised to benefit from a more favorable macroeconomic environment and recent regulatory developments that reduce uncertainties, particularly concerning late fee rules. These factors have allowed Atlanticus to increase its investments in personnel and operations, which were previously constrained due to regulatory concerns.
Moreover, the company’s growth outlook is bolstered by improved credit and spending trends among its borrower base, leading to an optimistic forecast for revenue growth outpacing portfolio expansion. Scharf also notes that Atlanticus is expected to experience near-term yield upside due to mitigating actions against late fees, which have been priced into credit card stocks. Despite a slight reduction in the price target, the overall positive outlook for earnings growth and credit performance supports the Buy rating.