Update shared on 29 Nov 2025
Analysts have raised their price target for Upbound Group from $21 to $36, citing improved near-term earnings visibility as well as anticipated financial benefits from operational growth and legislative changes.
Analyst Commentary
Bullish Takeaways- Bullish analysts highlight enhanced earnings visibility driven by robust growth in Upbound’s Acima and Brigit platforms. This suggests improved execution capabilities.
- Anticipated financial benefits from newly enacted legislative measures are expected to result in a multi-year cash windfall. These benefits may support higher valuation potential.
- Recent management meetings have left analysts more confident in the company’s near-term financial outlook and its ability to deliver on growth forecasts.
- At current share levels, the risk-reward profile is viewed as favorable. Optimistic projections indicate that upside opportunities outweigh potential downside risks.
- Bearish analysts caution that the company’s positive performance is heavily reliant on sustained momentum in key segments such as Acima and Brigit.
- There is uncertainty regarding the longevity of legislative benefits, especially if macroeconomic or regulatory environments shift.
- Some analysts express concerns about execution risks, including the company’s ability to translate operational growth into sustainable profitability over time.
What's in the News
- Upbound Group announced that Mr. Hal Khouri will join as Chief Financial Officer effective November 10, 2025. He brings more than 30 years of relevant industry experience. (Key Developments)
- The company expects same store sales to be flat to positive for the fourth quarter of 2025. (Key Developments)
- Upbound Group has completed the repurchase of 8,072,776 shares, representing 13.41% of total shares, for $265.16 million under its buyback program announced in December 2021. (Key Developments)
Valuation Changes
- Fair Value: Remains unchanged at $31.38, reflecting a stable assessment of intrinsic worth.
- Discount Rate: Holds steady at 12.5%, indicating no recent change in the risk premium applied.
- Revenue Growth: Essentially unchanged, with a negligible decrease from 6.01% to 6.01% in updated forecasts.
- Net Profit Margin: Remains virtually flat, edging down marginally from 5.97% to 5.97%.
- Future P/E: Has declined from 9.33x to 8.09x, which signals a modest contraction in anticipated future earnings multiples.
Disclaimer
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