Analyst Brian McNamara from Canaccord Genuity maintained a Buy rating on EZCORP (EZPW – Research Report) and keeping the price target at $22.00.
Brian McNamara has given his Buy rating due to a combination of factors that highlight EZCORP’s resilience and growth potential. Despite the recent termination of the Auto Dinero acquisition deal in Mexico, McNamara believes that EZCORP remains committed to expanding both organically and inorganically in the region. This is supported by the company’s record performance in pawn loans outstanding, which saw significant growth, particularly in Latin America.
Moreover, the demand for pawnbroking services is on the rise, driven by persistent inflation and limited credit options for consumers. This positions EZCORP well in the current economic climate, as more consumers turn to affordable, sustainable pre-owned goods. Additionally, the company’s strategic focus on opening new stores in Mexico, where costs are lower and profitability is achieved quickly, further supports the Buy rating. McNamara also notes the positive impact of leadership changes in Mexico, which are expected to drive further operational improvements.
In another report released on March 17, Roth MKM also initiated coverage with a Buy rating on the stock with a $16.00 price target.