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Investing.com - Raymond James raised its price target on Jefferson Capital (NASDAQ:JCAP) to $22.00 from $19.00 on Friday, while maintaining an Outperform rating on the stock. The company, currently trading at $18.87 with a market cap of $1.2 billion, is considered overvalued according to InvestingPro analysis.
The investment firm cited Jefferson Capital’s performance, noting that despite what appeared to be a "noisy quarter," the company exceeded Raymond James’ estimates across all meaningful metrics. The company maintains strong fundamentals with a 71% gross profit margin and an impressive return on equity of 43%, while generating $273 million in EBITDA over the last twelve months.
Raymond James highlighted Jefferson Capital’s lower leverage and efficient collection model, which includes full utilization of outsourcing, as key strengths for the company.
The firm also pointed to Jefferson Capital’s heavy exposure to the U.S. market, which it currently views as more attractive, as a factor that positions the company to outperform in the medium term.
Raymond James indicated that Jefferson Capital’s positive outlook and strong execution record justify maintaining the Outperform rating on the stock. With earnings scheduled for August 20th, investors can access detailed financial analysis and 12+ exclusive ProTips through InvestingPro’s comprehensive research report.
In other recent news, Jefferson Capital reported significant growth in its Q2 2025 earnings, demonstrating robust year-over-year increases across several financial metrics. This strong performance was highlighted in the company’s earnings call, where strategic achievements and future outlooks were discussed. JMP Securities has reiterated its Market Outperform rating on Jefferson Capital, maintaining a price target of $23.00. The firm noted that the company has shown stability in its business model and market position since its initial public offering less than two months ago. These developments suggest a positive trajectory for Jefferson Capital, according to JMP Securities.
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