Despite Upbound Group’s solid operational performance and ongoing improvements in its Acima division, analysts have tempered their outlook due to persistent U.S. macroeconomic uncertainty, resulting in a lowered consensus price target from $36.25 to $34.50.
Analyst Commentary
- Q2 results exceeded expectations, demonstrating strong quarterly performance.
- Acima division showed consistent improvement with seven consecutive quarters of year-over-year GMV growth and six consecutive quarters of revenue growth.
- Analysts remain encouraged by the company's operational progress and recent business trends.
- Continued U.S. macroeconomic uncertainty is constraining optimism and keeps analysts cautious.
- Downward price target revision reflects tempered expectations despite positive company-specific fundamentals.
What's in the News
- Upbound Group completed the repurchase of 8,072,776 shares (13.41%) for $265.16 million, with no shares repurchased in the latest tranche.
- The company was added to multiple Russell indices including Russell 3000 Value, 2500 Value, Small Cap Comp Value, 2000 Value, 3000E Value, and the 2000 Value-Defensive Index.
Valuation Changes
Summary of Valuation Changes for Upbound Group
- The Consensus Analyst Price Target has fallen slightly from $36.25 to $34.50.
- The Consensus Revenue Growth forecasts for Upbound Group has fallen from 7.4% per annum to 6.7% per annum.
- The Discount Rate for Upbound Group has risen from 10.77% to 11.54%.
Disclaimer
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