Fiserv earnings missed by $0.61, revenue fell short of estimates
Investing.com - Citizens has raised its price target on Enova International (NYSE:ENVA) to $149.00 from $135.00 while maintaining a Market Outperform rating. The company, currently trading at a P/E ratio of 12.4x, has shown strong momentum with a 23% return over the past year.
The financial services company reported quarterly results featuring over 20% originations growth led by its small and medium business segment, stable to improving credit metrics, and significant bottom-line performance that exceeded expectations. The company’s impressive 82% gross margin and revenue growth of 22% underscore its operational efficiency.
Citizens highlighted Enova’s favorable credit environment across all products, noting this contradicts recent market concerns about credit conditions that emerged last month. The firm also pointed to Enova’s significant excess liquidity and borrowing capacity as positive factors, supported by a robust current ratio of 20.4x.
The research firm applied a multiple of approximately 10x to its updated 2026 adjusted earnings per share estimate, resulting in the higher price target. Citizens noted that Enova currently trades at approximately 8x its 2026 EPS outlook.
Enova’s management has indicated it may explore alternatives to unlock shareholder value, with Citizens suggesting particular focus on additional paths for increasing capital returns to investors beyond current levels.
In other recent news, Enova International reported its third-quarter 2025 earnings, revealing a strong financial performance. The company achieved an adjusted earnings per share (EPS) of $3.36, which was notably higher than the forecasted $3.03. Despite this success, Enova experienced a slight revenue miss, although the company’s stock remained resilient in aftermarket trading. In addition to its earnings report, BTIG raised its price target for Enova International from $129 to $144 while maintaining a Buy rating. BTIG highlighted that Enova’s results indicate that recent credit issues impacting the subprime consumer finance and small business sectors are not affecting all lenders equally. These developments provide investors with insights into Enova’s current standing and market perception.
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