Nomura Securities Maintains a 'Buy' on EZCORP (EZPW); Gold Concerns Are Overblown, In Our View
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Price: $32.22 +12.03%
Rating Summary:
10 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
10 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
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Nomura Securities maintains a 'Buy' on EZCORP (NASDAQ: EZPW) price target of $37.00.
Analyst, Bill Carcache, said, "EZPW shares have outperformed gold since 1991: EZPW +9.0% CAGR vs. gold +7.6% CAGR. Although gold prices have provided a nice tailwind, we don’t believe they’ve driven as much of the strong performance as correlation levels in the 0.95 R-squared range suggest. That said, we’ll take the tailwind. Nomura’s European Metals & Mining analyst recently initiated coverage of the European gold sector with a bullish view. He believes gold prices are likely to remain elevated until at least 2015. Although EZPW is certainly not immune to gold price volatility, we believe the apparent strength of the gold correlation is misleading. Only 15% of EZPW’s net revenues are directly tied to gold. If gold prices fell ~20%, we estimate that EZPW’s EPS would decline by only ~3%, much less significant than some fear. We would look at future gold-related dips in the share price as buying opportunities."
For an analyst ratings summary and ratings history on EZCORP click here. For more ratings news on EZCORP click here.
Shares of EZCORP closed at $27.14 yesterday.
Analyst, Bill Carcache, said, "EZPW shares have outperformed gold since 1991: EZPW +9.0% CAGR vs. gold +7.6% CAGR. Although gold prices have provided a nice tailwind, we don’t believe they’ve driven as much of the strong performance as correlation levels in the 0.95 R-squared range suggest. That said, we’ll take the tailwind. Nomura’s European Metals & Mining analyst recently initiated coverage of the European gold sector with a bullish view. He believes gold prices are likely to remain elevated until at least 2015. Although EZPW is certainly not immune to gold price volatility, we believe the apparent strength of the gold correlation is misleading. Only 15% of EZPW’s net revenues are directly tied to gold. If gold prices fell ~20%, we estimate that EZPW’s EPS would decline by only ~3%, much less significant than some fear. We would look at future gold-related dips in the share price as buying opportunities."
For an analyst ratings summary and ratings history on EZCORP click here. For more ratings news on EZCORP click here.
Shares of EZCORP closed at $27.14 yesterday.
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