Trump to impose 100% tariff on China starting November 1
Investing.com - BTIG raised its price target on Atlanticus Holdings Corp. (NASDAQ:ATLC) to $105 from $84 while maintaining a Buy rating, citing the company’s acquisition of Mercury Finance. The stock, currently trading at $72.17, has delivered an impressive 130% return over the past year. According to InvestingPro data, three analysts have recently revised their earnings estimates upward for the upcoming period.
The research firm increased its 2027 earnings per share (EPS) estimate by 32% to $15.94, which is $3.86 higher than its previous projection. This falls at the high end of Atlanticus’s guidance for $2-$4 accretion to 2027 EPS from the Mercury Finance acquisition. With a current P/E ratio of 12.8 and market capitalization of $1.09 billion, InvestingPro analysis suggests the stock is trading above its Fair Value. Discover more insights with InvestingPro’s comprehensive research report.
BTIG characterized its estimates as conservative regarding purchase volume, receivables growth rates, operating leverage, and credit trends. The firm noted it would not be surprised if Atlanticus’s new underlying earnings power could push 2027 EPS above $20 after normalizing for integration and execution of synergies.
The research firm previously published an initial analysis of the acquisition, which is available to its clients.
BTIG will host Atlanticus’s CEO and CFO at its BTIG Consumer Finance Corporate Access Day on Wednesday, September 17, and interested parties can contact their BTIG representative for more information.
In other recent news, Atlanticus Holdings Corporation has announced the acquisition of Mercury Financial, a major credit card issuer focused on near-prime customers, marking its first acquisition in nearly two decades. This $162 million cash deal includes additional potential incentives based on the credit performance of the acquired portfolio. As a result of the acquisition, Atlanticus will add 1.3 million credit card accounts and $3.2 billion in credit card receivables to its portfolio, expanding its reach into the near-prime consumer segment. The acquisition increases Atlanticus’ total serviced accounts to over 5 million and managed receivables to more than $6 billion.
Additionally, Atlanticus has completed a private offering of $400 million in senior notes due in 2030, priced at a 9.75% interest rate. The net proceeds from this offering are intended to repay outstanding amounts under its recourse warehouse facilities, fund general corporate purposes including potential acquisitions, and pay related fees and expenses. Some of the proceeds might also be used to partially or fully repay its 6.125% Senior Notes due in 2026. The notes, guaranteed by certain domestic subsidiaries, will bear interest payable semi-annually starting March 1, 2026. Analyst firm JMP has reiterated an "outperform" rating on Atlanticus following the Mercury deal.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.