Moshe Orenbuch, an analyst from TD Cowen, maintained the Sell rating on Credit Acceptance. The associated price target remains the same with $470.00.
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Moshe Orenbuch has given his Sell rating due to a combination of factors impacting Credit Acceptance’s financial performance and market position. The company’s recent quarterly earnings fell short of expectations, with both GAAP and adjusted EPS missing estimates. This shortfall is attributed to ongoing weaknesses in their back book and heightened competition in the market, which are significant challenges for the company.
Additionally, Credit Acceptance’s forecasted collections have been revised downward, indicating potential difficulties in recovering loans. The company also faced higher operating expenses due to increased legal costs, which further pressures their financials. Despite some positive aspects like improved revenue from higher portfolio yields and strong share buybacks, the decline in originations and market share, coupled with a challenging competitive landscape, underpin the Sell rating by Moshe Orenbuch.
According to TipRanks, Orenbuch is a top 100 analyst with an average return of 22.9% and a 70.50% success rate. Orenbuch covers the Financial sector, focusing on stocks such as SLM, Bread Financial Holdings, and American Express.