Strong Financial Performance and Strategic Positioning Drive Buy Rating for Enova International

TD Cowen analyst Moshe Orenbuch maintained a Buy rating on Enova International (ENVA – Research Report) yesterday and set a price target of $117.00.

Moshe Orenbuch has given his Buy rating due to a combination of factors that highlight Enova International’s strong financial performance and strategic positioning. The company reported first-quarter earnings per share that exceeded both his and the consensus estimates, driven by a lower-than-expected tax rate and robust revenue performance, particularly in the small business segment. This was despite higher operational and interest expenses, which were primarily attributed to increased marketing efforts aimed at fostering growth.
Additionally, Enova’s loan growth surpassed expectations in both consumer and small business sectors, with solid credit performance despite slightly higher loss rates. The management’s proactive approach in capital returns, including significant stock buybacks, and the ability to swiftly adapt to macroeconomic changes due to their short-duration loans, further support the positive outlook. Consequently, Orenbuch’s investment conclusion reflects confidence in Enova’s continued profitability and growth potential, leading to the Buy rating.

Orenbuch covers the Financial sector, focusing on stocks such as SLM, OneMain Holdings, and Bread Financial Holdings. According to TipRanks, Orenbuch has an average return of 20.1% and a 65.23% success rate on recommended stocks.