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Stock impact report

TD Cowen Highlights Structural Growth in Specialty Finance, Keeps Upbound (UPBD) Buy [Yahoo! Finance]

Upbound Group, Inc. (UPBD) 
Company Research Source: Yahoo! Finance
On January 8, TD Cowen analyst Hoang Nguyen trimmed Upbound Group, Inc. (NASDAQ:UPBD)'s price target to $30 from $31. However, the firm maintained a Buy rating on the stock. The adjustment reflected the firm's broader view of the specialty finance space, where macro pressures are weighing on the outlook even as several areas of consumer credit continue to show long-term growth. The analyst pointed to ongoing expansion across credit cards, auto and student lending, non-prime credit, buy-now-pay-later, and lease-to-own models. Upbound's third-quarter results backed up that constructive view. Revenue climbed 9% from a year earlier to $1.16 billion, while adjusted EBITDA rose 5.7% to $123.6 million. Rent-A-Center showed clear sequential improvement in same-store sales and held firm on margins, posting a 16.2% adjusted EBITDA margin. Management now expects same-store sales to move closer to flat, or even slightly positive, in the fourth quarter. Brigit was another bright spot. The pla Show less Read more
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