UPDATE: JMP Securities Downgrades Regional Management (RM) to Market Perform

JMP Securities analyst David Scharf downgraded Regional Management (NYSE: RM) from Market Outperform to Market Perform.

The analyst comments "Our transition to a neutral bias on shares of RM is primary valuation driven, with the shares up 291% over the past 52 weeks, up 111% YTD (highest in our coverage), and trading at a multiple of our 2022 outlook (11.7x) that is a ~45% premium to its 3-, 5-, and 10-year historical average. We have been bullish on the recovery in subprime lending since early in the year, and particularly constructive on RM given its multitude of new product and channel initiatives. Yet we believe that much of this is already priced into the shares, and we further note that potentially less support from share repurchases, as more capital is deployed towards new loan volume, could lessen a prominent tailwind that has supported the stock YTD. Accordingly, we see the shares as fairly valued."

For an analyst ratings summary and ratings history on Regional Management click here. For more ratings news on Regional Management click here.

Shares of Regional Management closed at $62.76 yesterday.

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