TD Cowen analyst Hoang Nguyen maintained a Buy rating on PROG Holdings (PRG – Research Report) today and set a price target of $43.00.
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Hoang Nguyen’s rating is based on a combination of factors that include PROG Holdings’ recent financial performance and management’s conservative guidance. The company reported earnings per share for the fourth quarter that exceeded both the firm’s estimate and market consensus, primarily due to higher-than-expected revenues from interest and fees on loans, which compensated for slightly lower lease revenues. Additionally, lower depreciation of lease merchandise contributed to an improved gross margin, despite higher provisions for write-offs and interest expenses.
Moreover, Nguyen acknowledges the initial guidance for 2025 is below expectations, reflecting the potential impact of Big Lots’ bankruptcy. However, he notes that historically, PROG Holdings has provided conservative guidance but has often exceeded those expectations throughout the year. This history of prudent guidance and solid quarterly performance supports the Buy rating, even as future estimates were adjusted to reflect a more cautious outlook.
In another report released today, Loop Capital Markets also maintained a Buy rating on the stock with a $45.00 price target.