Vincent Caintic, an analyst from BTIG, maintained the Sell rating on PROG Holdings. The associated price target remains the same with $27.00.
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Vincent Caintic has given his Sell rating due to a combination of factors surrounding PROG Holdings. One of the primary concerns is the uncertainty regarding the profitability of Four Technologies, a segment of PROG Holdings. Despite the potential for growth, Four Technologies is currently not profitable and has negative EBITDA, which raises questions about its future economic viability.
Additionally, Caintic expresses caution about the broader consumer lending environment, particularly for companies that rely on rapid growth to justify their valuations. The anticipated stress in PROG Holdings’ core lease-to-own business, coupled with increased competition in the point of sale finance sector, further contributes to the Sell rating. While there is a potential bull case valuation if certain growth targets are met, the current uncertainties and financial challenges lead to a more conservative outlook.
PRG’s price has also changed moderately for the past six months – from $26.870 to $30.540, which is a 13.66% increase.