First Cash Financial (FCFS) No Longer a Top Pick at FBR on Earnings Warning

FBR Capital maintained an Outperform rating on First Cash Financial (NASDAQ: FCFS) but trimmed its price target from $62 to $58 following a reduced earnings outlook given continued gold pressure, Mexican peso depreciation, and slow U.S.\ consumer loan growth. The firm removed the stock from its Top Picks List.

As a result of the lowered guidance, FBR is reduce 2013 and 2014 operating EPS estimates to $2.90 (from $3.10) and $3.55 (from $3.65), respectively.

"While these challenges are largely outside of management's control, and we consider the company better positioned than peers in terms of exposure to the U.S. consumer, gold, and regulatory risk, we are also removing FCFS from the FBR Top Pick list given our outlook for more limited near-term upside in the company's shares," analyst Bob Ramsey states.

Over the long-term, the analyst said First Cash Financial continues to build a best-in-class full-format franchise in Mexico, and with just 500 stores south of the border, the company still has plenty of room to grow in order to meet the demands of 70 million underbanked people.

For an analyst ratings summary and ratings history on First Cash Financial click here. For more ratings news on First Cash Financial click here.

Shares of First Cash Financial closed at $55.20 yesterday.

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