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On Wednesday, BTIG analyst Vincent Caintic initiated coverage on Oportun Financial Corp (NASDAQ:OPRT), currently trading at $6.49, assigning the stock a Buy rating and setting a price target of $10.00. The analyst noted the significant recent rise in the company’s share value, with InvestingPro data showing an impressive 67.27% year-to-date return. This surge reflects market expectations of some earnings power, albeit from a low base.
Caintic’s valuation of Oportun Financial is based on projections for the year 2026, with an estimated 4.8 times the GAAP earnings per share (EPS) and 82% of the tangible book value (TBV). The company maintains a strong financial position with a current ratio of 9.47, indicating robust liquidity. This suggests that the return on equity (ROE) is anticipated to remain below 10%, indicating modest near-term growth in receivables for the company. The analyst compared Oportun Financial to its peers OneMain Financial and Regional Management (NYSE:RM), both rated Neutral, to highlight the potential for Oportun to achieve similar economic results.
The coverage suggests that if Oportun Financial can align with its peers in terms of performance, its shares could see further gains. This would not only be due to an increase in valuation but also as a result of earnings growth expectations moving closer to BTIG’s projections. The firm forecasts a 211% year-over-year growth in GAAP EPS for 2026 and a 22% increase in 2027.
Caintic’s commentary emphasized the potential for Oportun’s shares to perform well if the company can demonstrate the ability to achieve earnings growth in line with the analyst’s expectations. The price target of $10.00 reflects BTIG’s confidence in Oportun Financial’s future performance relative to its current market valuation and the anticipated growth in earnings.
In other recent news, Oportun Financial Corp reported strong financial results for the fourth quarter of 2024, significantly exceeding earnings expectations. The company posted an earnings per share (EPS) of $0.49, which was much higher than the forecast of $0.0013. Oportun’s revenue reached $251 million, surpassing projections, and the company achieved a GAAP net income of $9 million, marking a $51 million year-over-year improvement. Additionally, Oportun’s adjusted EBITDA increased by 315% compared to the previous year. The company is projecting total revenue between $945 million and $970 million for 2025, with an expected adjusted net income ranging from $53 million to $63 million. Analysts from firms such as JPMorgan and Jefferies engaged with the company during the earnings call, acknowledging the company’s performance and future guidance. Oportun also announced a transition in its financial leadership, with Jonathan Copeland retiring as CFO and Casey Mueller stepping in as Interim CFO. These developments reflect Oportun’s strategic focus on growth and operational efficiency moving into 2025.
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