Should B. Riley’s Bullish Fintech Call and Dividend Shift Require Action From PROG Holdings (PRG) Investors?

• B. Riley Securities recently initiated research coverage on PROG Holdings with a Buy rating, emphasizing the company’s expanding fintech portfolio and announced acquisition of Purchasing Power, a B2B2C platform slated for early 2026.
• The broker’s focus on PROG Holdings’ growing Buy Now, Pay Later operations through Four Technologies and the company’s new quarterly dividend highlights a shift toward both fintech-driven expansion and shareholder returns.
• We’ll now examine how B. Riley’s upbeat coverage, centered on PROG’s fintech expansion, could reshape the company’s existing investment narrative.

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PROG Holdings Investment Narrative Recap

To own PROG Holdings, you need to believe it can steadily shift from a lease to own background toward a broader fintech platform while managing credit risk in a subprime customer base. B. Riley’s upbeat initiation reinforces the fintech growth angle, but does not materially alter the near term catalyst around Buy Now, Pay Later scaling or the key risk of rising BNPL competition and potential margin pressure.

Among recent announcements, the introduction and continuation of the quarterly US$0.13 dividend stands out alongside B. Riley’s focus on shareholder returns. For investors watching catalysts, the dividend signals management’s confidence in cash generation even as PROG invests in BNPL expansion and prepares for the Purchasing Power acquisition, which together could test how well the company can balance growth investments with ongoing capital returns.

Yet behind this fintech and dividend story, investors should be aware of the growing competitive pressure in BNPL and what it might mean for...

Read the full narrative on PROG Holdings (it's free!)

PROG Holdings' narrative projects $2.7 billion revenue and $141.4 million earnings by 2028. This requires 2.5% yearly revenue growth and an earnings decrease of $73.3 million from $214.7 million.

Uncover how PROG Holdings' forecasts yield a $38.57 fair value, a 26% upside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community span from about US$39 to an extreme outlier above US$9,000, showing just how far opinions can stretch. Against that backdrop, PROG’s BNPL driven growth ambitions and the risk of intensifying fintech competition give you good reasons to compare several of these perspectives before deciding how this stock might fit your own expectations.

Explore 4 other fair value estimates on PROG Holdings - why the stock might be worth just $38.57!

Build Your Own PROG Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your PROG Holdings research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free PROG Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate PROG Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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