Jefferies Starts Rent-A-Center (RCII) at Hold
- Wall Street hits new high as post-election rally roars ahead
- ECB to scale back asset buys as it extends to end-2017
- lululemon athletica (LULU) Tops Q3 EPS by 4c; Adj.-Comps Outpaced Views
- Oil rises above $50 despite doubts over OPEC output cut
- Pre-Open Stock Movers 12/08: (VYGR) (TLRD) (LULU) Higher; (OHRP) (VRNT) (CMTL) Lower (more...)
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
Jefferies initiates coverage on Rent-A-Center (NASDAQ: RCII) with a Hold rating and a price target of $10.00, saying valuation is attractive but they will look for fundamentals to recover before recommending the stock.
Analyst Kyle Joseph commented, "RCII's core business remains under pressure while recent NCO increases have weighed on growth at its virtual RTO segment - Acceptance Now. Given these two businesses represent ~97% of the consolidated results, we await a recovery in these segments before recommending the shares, despite the current discounted valuation versus AAN. With the 3Q16 pre-announcement, it appears trends continued to worsen which increases concerns on the sustainability of cash flows/eventual share repurchase activity, which we had considered potential catalysts for shares."
Shares of Rent-A-Center closed at $9.55 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Stifel Downgrades Timken (TKR) to Hold
- Credit Suisse Upgrades Delek US (DK) to Outperform; Merger Synergies Underappreciated
- lululemon athletica (LULU): Good Quarter But Can It Continue - Jefferies
Create E-mail Alert Related CategoriesAnalyst Comments, New Coverage
Related EntitiesJefferies & Co
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!