FirstCash: Robust Pawn Performance, Accelerating Loan Growth, and Synergy Upside Support Buy Rating

Analyst Moshe Orenbuch of TD Cowen maintained a Buy rating on FirstCash, with a price target of $190.00.

Moshe Orenbuch has given his Buy rating due to a combination of factors that highlight both operational strength and favorable outlook. FirstCash delivered earnings that exceeded both his forecast and market expectations, largely driven by stronger-than-anticipated revenue that more than compensated for higher costs. Pawn operations outperformed particularly in Latin America and the U.K., where robust retail sales, higher pawn loan fees, and improved scrap-related income supported a notable upside in gross profit. In addition, pawn loan balances grew faster than he had modeled across all regions, and AFF’s transaction volumes were significantly ahead of his projections even as profitability tracked in line.

Orenbuch also underscores that demand across pawn markets remains very solid, with first-quarter-to-date loan growth in the U.S. and Latin America already running ahead of his assumptions. He expects the U.K. business to be more profitable than previously anticipated and sees additional margin and efficiency upside as the recently acquired H&T operations are integrated onto FirstCash’s platform. AFF is projected to return to growth in 2026, aligning with his prior expectations, which supports a longer-term growth story beyond near-term performance. Together with strong capital generation, ongoing deleveraging following the H&T acquisition, and upward revisions to his out-year earnings estimates, these dynamics underpin his positive view and justify maintaining a Buy rating on the shares.

In another report released on January 28, Canaccord Genuity also maintained a Buy rating on the stock with a $210.00 price target.