Jefferies Starts Rent-A-Center (RCII) at Hold

October 13, 2016 6:58 AM EDT
Get Alerts RCII Hot Sheet
Price: $8.31 -18.45%

Rating Summary:
    6 Buy, 8 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
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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."

For an analyst ratings summary and ratings history on Rent-A-Center click here. For more ratings news on Rent-A-Center click here.

Shares of Rent-A-Center closed at $9.55 yesterday.

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