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On Wednesday, BTIG initiated coverage on Oportun Financial Corp (NASDAQ: NASDAQ:OPRT) with a positive outlook, assigning the stock a Buy rating and a price target of $10.00. According to InvestingPro data, the stock has demonstrated remarkable momentum with a 132% return over the past six months and an 80% gain over the past year. This surge in price was attributed to market expectations of the company’s potential earnings power, albeit at levels considered low by the analyst. InvestingPro analysis indicates the stock is currently undervalued based on its proprietary Fair Value model.
The assessment by BTIG suggests that Oportun Financial’s current valuation, at 4.8 times the firm’s projected 2026 GAAP earnings per share (EPS) and 82% of its expected 2026 tangible book value (TBV), reflects a forecast of subpar return on equity (ROE) remaining below 10%. InvestingPro data shows the company maintains strong financial health with a current ratio of 9.47, indicating robust liquidity. Additionally, while it implies limited near-term growth in receivables, InvestingPro forecasts 26% revenue growth for FY2025. Despite these conservative market expectations, the analyst believes that Oportun Financial is positioned to achieve economic results comparable to its peers, OneMain Financial and Regional Management (NYSE:RM), both rated Neutral by BTIG.
BTIG’s coverage note also provided a comparative analysis with these peers to underscore the reasons for their positive stance on Oportun Financial. The analyst expressed confidence that if their analysis proves accurate, Oportun Financial’s stock could benefit not only from a higher valuation but also from an alignment of market expectations with BTIG’s forecast. The firm anticipates an impressive year-over-year GAAP EPS growth of 211% in 2026 and a further 22% increase in 2027.
The analyst’s comments highlight the potential for Oportun Financial to mirror the economic performance of its industry counterparts, which could lead to an upward revision in earnings growth expectations. The price target set by BTIG reflects this optimism and the potential for the stock to continue its upward trajectory as the company’s financials evolve in line with the firm’s projections.
In other recent news, Oportun Financial Corp reported a strong performance for Q4 2024, with earnings per share (EPS) of $0.49, significantly exceeding the forecast of $0.0013. The company’s total revenue reached $251 million, surpassing expectations, and it achieved a GAAP net income of $9 million, marking a $51 million year-over-year improvement. Additionally, Oportun Financial’s adjusted EBITDA increased by 315% compared to the previous year, reflecting the company’s effective cost management strategies. Looking forward, Oportun projects total revenue between $945 million and $970 million for 2025, with adjusted net income expected to range from $53 million to $63 million. BTIG recently initiated coverage on Oportun Financial with a Buy rating and a price target of $10.00, citing the potential for the company to achieve earnings growth in line with its peers. The firm noted a forecasted 211% year-over-year growth in GAAP EPS for 2026. These developments indicate a period of financial strength and growth for Oportun Financial, drawing positive attention from analysts and investors alike.
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