FBR Capital Starts Springleaf Holdings (LEAF) at Outperform

FBR Capital initiates coverage on Springleaf Holdings (NYSE: LEAF) with a Outperform rating and a price target of $65.00.

Analyst Bob Ramsey commented, "We initiate coverage of Springleaf Holdings, Inc. (LEAF) with an Outperform rating and a 12-month price target of $65 per share, equal to 10x our FY17 EPS estimate of $6.50. Springleaf is a nearly 100-year-old consumer lender that makes installment loans to near-prime borrowers at rates below 36%. The company generated 13% year-over-year growth in core revenues and 25% growth in average consumer loan receivables in 2Q15. We like the company's planned acquisition of OneMain, which offers significant cost-savings potential and should be very accretive to EPS (we model more than doubling of EPS in 2016), as well as its digital strategy, which should give it a platform similar to marketplace lenders such as Lending Club (LC) and Prosper, while also helping it originate loans online, similar to online lenders such as Enova (ENVA)."

For an analyst ratings summary and ratings history on Springleaf Holdings click here. For more ratings news on Springleaf Holdings click here.

Shares of Springleaf Holdings closed at $42.60 yesterday.

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