Analyst Hoang Nguyen from TD Cowen maintained a Buy rating on Upbound Group and keeping the price target at $36.00.
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Hoang Nguyen has given his Buy rating due to a combination of factors including Upbound Group’s better-than-expected earnings performance and revenue growth. The company reported a second-quarter EPS that surpassed both Nguyen’s and the consensus estimates, driven by higher rentals, fees, and merchandise sales. Despite higher operational expenses and cost of revenue, the overall gross profit exceeded expectations, which supports a positive outlook.
Nguyen also notes that Upbound Group maintained its annual revenue guidance and slightly increased its EPS guidance, indicating confidence in future performance. Although the stock experienced a downward reaction post-earnings due to the lack of a full-year guidance raise, Nguyen believes the business trajectory remains unchanged. The strong performance of Brigit and the momentum in Acima further bolster the positive investment outlook, leading to a maintained price target and Buy rating.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $28.00 price target.
Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of UPBD in relation to earlier this year.