Analysts have slightly lowered their price target for Upbound Group to $31.38 from $32.38. This adjustment is attributed to improved near-term earnings prospects and ongoing growth in key segments, but is offset by a higher discount rate and modestly reduced profit margin expectations.
Analyst Commentary
Bullish Takeaways- Bullish analysts cite increased confidence in Upbound Group's near-term earnings potential, supported by ongoing growth in key business segments such as Acima and Brigit.
- Recent meetings with management have reinforced positive expectations around execution, particularly with regard to operational improvements and strategic focus.
- Upbound Group is expected to benefit from a projected cash influx over the coming years due to accelerated depreciation provisions related to recent legislative changes, which could strengthen financial flexibility.
- At current share levels, the company is viewed as offering a favorable risk-reward profile, with analysts identifying more upside potential than downside risk in the medium term.
- Bearish analysts note that a higher discount rate has tempered valuation expectations, which could limit share price appreciation even with operational improvements.
- Concerns exist around modestly reduced profit margin forecasts, which might impact earnings growth if not effectively managed.
- Uncertainty remains regarding the sustainability of recent segment growth, especially if market or regulatory conditions turn less favorable.
What's in the News
- Upbound Group announced that Mr. Hal Khouri will join the Company as its Chief Financial Officer effective November 10, 2025. Mr. Khouri brings over 30 years of financial leadership experience and will oversee Upbound's financial operations and strategic planning (Key Developments).
- Mr. Khouri will take on the CFO role from Mr. Fahmi Karam, who has served as both CEO and CFO since June 2025 (Key Developments).
- The company provided guidance for the fourth quarter of 2025, projecting same store sales to be flat or to show slight positive growth (Key Developments).
Valuation Changes
- Consensus Analyst Price Target: Lowered from $32.38 to $31.38. This reflects a modest decrease in fair value estimation.
- Discount Rate: Increased slightly from 12.32% to 12.5%. This indicates a marginally higher perceived risk in valuation models.
- Revenue Growth: The projected annual growth rate has risen slightly from 5.90% to 6.01%.
- Net Profit Margin: Reduced from 6.32% to 5.97%. This signals lowered expectations for future profitability.
- Future P/E: Increased from 8.41x to 9.33x. This suggests the market may be assigning a higher multiple to expected future earnings.
Disclaimer
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