Encore Capital (ECPG) Reiterated at Market Outperform by Citizens on Guidance Update

Citizens analyst David Scharf reiterated a Market Outperform rating and $115.00 price target on Encore Capital Inc. (NASDAQ: ECPG).

The analyst commented, "We raise our 2026 EPS estimate to reflect the 2Q26 upside and management’s updated guidance, and our 2027 earnings estimate moves up as well. • Investment call. Despite shares of ECPG soaring 79% YTD and 154% over the last twelve months, significantly outperforming consumer finance peers, we believe shares remain attractive at ~7x our current 2027 EPS outlook. We continue to highlight for investors: (i) the cyclical “sweet spot” in the U.S. of elevated supply, stable employment, and rational competition; (ii) aggressive capital returns and excess free cash flow; and (iii) enhanced earnings visibility that has led the company to introduce EPS guidance for the first time this year. Further, we believe the introduction of earnings guidance, the multi-year track record of consistent portfolio, margin, and earnings growth, and a market cap of ~$2.2B combine to make the stock more “ownable.” Our $115 price target equates to ~8x our updated 2027 GAAP EPS estimate."

For an analyst ratings summary and ratings history on Encore Capital Inc. click here. For more ratings news on Encore Capital Inc. click here.

Shares of Encore Capital Inc. closed at $94.92 yesterday.

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