Update shared on 04 Nov 2025
Fair value Decreased 9.09%Analysts have lowered their price target for PRA Group from $25.67 to $23.33. This reflects modest improvements in cash efficiency; however, it is moderated by slightly slower anticipated revenue growth.
Analyst Commentary
Bullish analysts see several positive factors influencing PRA Group's valuation and performance despite the reduced price target.
Bullish Takeaways- Improved cash efficiency is viewed as a modest positive for the company's operational execution.
- The ability to outperform earnings expectations in the recent quarter is seen as a sign of management's effective execution.
- Retention of a Buy rating signals continued confidence in PRA Group's long-term growth potential.
- Marginally slower revenue growth has tempered analyst enthusiasm for more aggressive price targets.
- The reduction in the price target reflects a cautious approach to the company's near-term growth trajectory.
- Concerns remain about the pace at which PRA Group can scale its top-line revenues despite improvements in efficiency.
What's in the News
- PRA Group, Inc. reported a Goodwill impairment of $412,611,000 for the three months ended September 30, 2025 (Key Developments).
Valuation Changes
- The consensus analyst price target has declined from $25.67 to $23.33, representing a modest decrease.
- The discount rate remains unchanged at 12.32%.
- The revenue growth projection has risen slightly, from 6.26% to 6.42%.
- The net profit margin has increased significantly, from 4.94% to 16.55%.
- The future P/E ratio has fallen sharply, from 20.58x to 5.42x.
Disclaimer
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