Rent-A-Center cut to Hold at Loop Capital on valuation, fundamental concerns

As previously reported, Loop Capital analyst Anthony Chukumba downgraded Rent-A-Center to Hold from Buy with an unchanged $30 price target. The stock is up 32% year-to-date, substantially outperforming the broader market indices and nearly reaching the firm’s target price, the analyst tells investors in a research note. The firm adds however that while the downgrade is mainly valuation driven, it also has some "fundamental concerns" around the dramatic pandemic-driven demand pull forwards in furniture and consumer electronics. Loop Capital adds it still has not seen any signs of consumers "trading down" to lease-to-own.