EZCORP (EZPW) PT Raised to $25 at Canaccord Genuity

Canaccord Genuity analyst Brian McNamara raised the price target on EZCORP (NASDAQ: EZPW) to $25.00 (from $24.00) while maintaining a Buy rating.

The analyst commented: "In theory, all macro environments are good as the pawn customer generally spends what they earn, according to CEO Mr. Lachie Given. This month, we put that view to the test, conducting another round of store checks across 85 EZPW (44) and FCFS (41) locations - the 11th in the series since we initiated on EZPW in January 2023 – to assess business trends during the summer. We also caught up with a store manager from our visits in Dallas in December 2022, who provided remarkable detail on her store’s recent robust performance. Overall, we found that business remains steady in the summer, with EZPW’s core customer still pressured and new (higher-income) faces coming into the stores seeking value. We also received several volunteered comments on gold this round, given its recent spike. We believe the recent range-bound performance in the share price is due to the retirement of its 2025 convertible notes being more dilutive
than the market was expecting. We continue to believe share buybacks should be a higher capital allocation priority as nearly 7.5m shares (or 9% of the diluted total) could be retired at today’s closing price with a ~$100m share repurchase. We modestly raise our Q3 estimates given our checks found better loan activity, which is more profitable, raise our PT to $25, and reiterate our BUY rating."

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