EZCORP (EZPW) PT Raised to $18 at Canaccord Genuity on 'increased estimates and a modestly higher target multiple'

Canaccord Genuity analyst Brian McNamara raised the price target on EZCORP (NASDAQ: EZPW) to $18.00 (from $17.00) while maintaining a Buy rating.

The analyst commented: "Following another record for pawn loans outstanding (PLO) in Q1, we recently conducted our sixth round of store checks across 85 EZPW (45) FCFS (40) locations across the U.S. to assess business trends during tax season. We also caught up with one of the store managers from our Dallas checks, who provided color on her store’s recent performance.
These checks leave us encouraged that the pawn business continues to perform well. The macro environment also continues to challenge EZPW’s value-conscious customer base, with inflation and economic uncertainty driving increased demand for pawn loans. We reiterate our BUY rating and increase our PT to $18 ($17 prior), driven by increased estimates and a modestly higher target multiple. We raise our target multiple a half-turn to 8.5x 2024E adjusted EBITDA as we believe the market is finally starting to appreciate the company’s strong execution and fundamentals."

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