Jefferson Capital stock initiated with Buy rating at Jefferies on tech advantages

Published 21/07/2025, 08:52
Jefferson Capital stock initiated with Buy rating at Jefferies on tech advantages

Investing.com - Jefferies initiated coverage on Jefferson Capital (NASDAQ:JCAP) with a Buy rating and a $29.00 price target on Monday, representing a significant upside from the current trading price of $16.70. The company, with a market capitalization of $1.08 billion, currently shows a "GOOD" overall financial health score according to InvestingPro analysis.

The investment firm’s price target represents approximately 10 times the company’s estimated fiscal year 2027 earnings per share, according to Jefferies’ research note.

The Buy rating is based on Jefferson Capital’s comparative advantages in the consumer debt collection sector, including asset class and geographic diversification, superior historical financial results, operational efficiencies, and a strong regulatory compliance record.

Jefferies also cited favorable macroeconomic trends supporting its positive outlook for the tech-based consumer debt collector.

The price target multiple range was determined by considering Jefferson Capital’s closest peers, incremental growth potential, and return on equity on a regression basis.

In other recent news, Jefferson Capital has received its first analyst coverage, with JMP Securities initiating research on the company. JMP has given Jefferson Capital a Market Outperform rating and set a price target of $23.00. This rating suggests that JMP expects the company to perform better than the overall market. The research firm has highlighted Jefferson Capital’s consistent profitability since its founding in 2002 and its successful expansion into four geographic regions. JMP’s price target considers a potential 43% total return, including the company’s annual dividend of $0.96. The firm’s analysis is based on projections of Jefferson Capital’s earnings per share through 2026. JMP Securities believes Jefferson Capital has the potential for significant organic growth compared to its industry peers. This growth is attributed to the company’s strategy of adding new sellers to its platform.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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