Analysts have raised their price target for Credit Acceptance from $446.25 to $458.00, citing incremental improvements in profit margin and a slight reduction in discount rate as supporting factors for the increased valuation.
What's in the News
- The Board of Directors has unanimously elected Vinayak R. Hegde as the next Chief Executive Officer, effective November 13, 2025. He will succeed outgoing CEO Kenneth S. Booth, who will retire as of January 31, 2026 (Key Developments).
- Credit Acceptance completed the repurchase of 230,064 shares, representing 2.05% of shares outstanding, for $106.39 million during the third quarter of 2025 under its August 2023 buyback program (Key Developments).
- To date, the company has repurchased a total of 1,838,933 shares, or 15.3%, amounting to $921.17 million as part of the ongoing share buyback program announced in August 2023 (Key Developments).
- The company’s Board has authorized a new share buyback plan for up to 2,000,000 shares, with no specified expiration date (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has increased from $446.25 to $458.00, reflecting a modest upward revision in fair value estimates.
- Discount Rate has fallen slightly from 11.04% to 10.95%, indicating marginally reduced risk assumptions.
- Revenue Growth projections have eased from 32.60% to 31.95%.
- Net Profit Margin has risen from 18.15% to 18.51%, signifying incremental improvement in profitability expectations.
- Future P/E ratio has edged higher from 9.37x to 9.55x.
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