Analyst Vincent Caintic from BTIG maintained a Hold rating on PROG Holdings and keeping the price target at $31.00.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Vincent Caintic has given his Hold rating due to a combination of factors surrounding the recent acquisition of Purchasing Power by PROG Holdings. The acquisition has sparked mixed reactions from investors, with some optimistic about the potential growth while others remain skeptical. Caintic’s projections for the company’s earnings per share (EPS) in 2026 and 2027 show a divergence from consensus estimates, with his 2027 EPS forecast significantly higher than the market’s expectations. This discrepancy is largely attributed to differing revenue forecasts, particularly concerning the growth of Four Technologies, a segment within PROG Holdings.
While Caintic is enthusiastic about the potential of Four Technologies, he remains cautious about its execution. In contrast, the growth prospects for Purchasing Power are seen as more modest, with projected revenue growth in the low double digits. This growth rate is comparable to the Leasing business, which has faced challenges in recent years. Caintic acknowledges that if the market perceives future growth to be in the low-single digits, it could lead to lower valuations for PRG shares. These uncertainties and mixed growth prospects contribute to the Hold rating, as Caintic balances potential opportunities with the risks involved.