Atlanticus Holdings Corp. (ATLC) PT Raised to $95 at Citizens JMP

Citizens JMP analyst David Scharf raised the price target on Atlanticus Holdings Corp. (NASDAQ: ATLC) to $95.00 (from $78.00) while maintaining a Market Outperform rating.

The analyst commented, "We update our key assumptions for the business following the Mercury acquisition. We are following up our initial takeaways of the acquisition of Mercury Financial (found here). Following our discussions with management, we provide updated estimates that reflect net yield growth on the Mercury portfolio as it optimizes fees and APRs, along with some gains on the fair value mark as the Mercury book reprices, and that reflect the company’s guidance of $1.00 and $3.00 of EPS accretion at the midpoints in 2026 and 2027, respectively. We maintain our Market Outperform rating and raise our price target to $95 from $78 as we apply a 9x target P/E to our new 2027 estimate and discount this back by one year to establish a 12-month price target. Given that a material portion of the accretion is reflective of one-off fair value gains on the Mercury book, we lower our price target multiple to 9x from 10x prior."

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