Ezcorp initiated with a Neutral at BTIG

BTIG initiated coverage of Ezcorp (EZPW) with a Neutral rating and no price target The company has done a good job of growing organically via additional store count, higher loan balances and more retail sales, the analyst tells investors in a research note. The firm believes the macro environment is “very conducive” to Ezcorp, as pawn lending typically benefits from a weaker economic environment. However, BTIG is worried about “affordability stress” and what it sees as Ezcorp’s rising inventories building and slowing turnover rate. This could imply customers are being overextended and forfeiting more, which is also negative in that the items are then too expensive for people to buy on retail, contends the firm.