UPBD: Near-Term Earnings Momentum And Cash Windfall Will Drive Future Upside

Upbound Group’s fair value price target has been revised downward by analysts from $36.38 to $32.38 per share. This change reflects updated expectations for slower revenue growth and profit margins, despite near-term optimism about earnings and anticipated cash benefits from recent legislation.

Upbound Group’s consensus price target has been raised to $36.38, reflecting increased analyst confidence in near-term earnings potential and ongoing strong performance at Acima, with further support from expected cash flow benefits due to accelerated depreciation provisions. Analyst Commentary Bullish analysts see increased confidence in near-term earnings potential, especially following management meetings that highlighted company growth drivers.

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.

Despite a notable upward revision in revenue growth forecasts for Upbound Group, a significantly higher discount rate has more than offset this, resulting in the consensus analyst price target falling from $41.11 to $36.25. What's in the News Upbound Group was added to multiple Russell value-oriented indices, including the Russell 3000, 2500, 2000, Small Cap Comp, and Russell 3000E Value, as well as the Russell 2000 Value-Defensive Index.