In a report released on May 9, Vincent Caintic from BTIG reiterated a Buy rating on Atlanticus Holdings (ATLC – Research Report), with a price target of $84.00.
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Vincent Caintic has given his Buy rating due to a combination of factors including Atlanticus Holdings’ impressive growth rate and strategic partnerships. Despite recent volatility in the stock price, Caintic maintains confidence in the company’s ability to expand its market share in the credit card sector. The 17% year-over-year growth in receivables is expected to continue, driven by new merchant partnerships, particularly with Synchrony.
Although the target price has been adjusted to $84 due to higher-than-expected expenses, these costs are associated with the company’s growth strategy and are anticipated to align with the growth in receivables. Atlanticus’s disciplined approach to underwriting and its competitive positioning are seen as strengths that could protect the company in economic downturns and enhance its performance in favorable conditions. The valuation remains attractive, with significant upside potential, even as the company invests in its future growth.
Based on the recent corporate insider activity of 23 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ATLC in relation to earlier this year.