In a report released yesterday, Brian McNamara from Canaccord Genuity maintained a Buy rating on EZCORP (EZPW – Research Report), with a price target of $24.00.
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Brian McNamara has given his Buy rating due to a combination of factors that highlight EZCORP’s potential for growth and value. One of the primary reasons is the company’s balanced approach to capital allocation, especially with an unexpected $97 million surplus on the balance sheet. This financial flexibility positions EZCORP to potentially authorize a significant share buyback, which could enhance shareholder value given the current undervaluation of the stock.
Additionally, McNamara notes the promising turnaround in EZCORP’s Latin American operations, which have shown substantial improvement and are beginning to contribute more significantly to the company’s overall performance. Despite concerns about inventory growth, gold price fluctuations, and competitive threats like buy now pay later services, McNamara believes these issues are overstated. The positive investor meetings and strong quarterly results further bolster confidence in EZCORP’s strategic direction, justifying the Buy rating and a price target of $24.
EZPW’s price has also changed slightly for the past six months – from $12.650 to $13.110, which is a 3.64% increase.
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