Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Investing.com - Jefferson Capital (NASDAQ:JCAP) received its first analyst coverage Monday as JMP Securities initiated research with a Market Outperform rating and a $23.00 price target. The stock, currently trading at $16.70, appears undervalued according to InvestingPro analysis.
The debt collection company, founded in 2002, has maintained profitability every year since its inception, according to JMP. Jefferson Capital, with a market capitalization of $1.08 billion and impressive 70.75% gross profit margin, specializes in collecting on hard-to-collect portfolios, particularly low-balance accounts. InvestingPro data shows the company maintains a "Good" overall financial health score.
The company has expanded beyond its core U.S. market and now operates in four geographic regions, covering six different product types. This diversification has helped JCAP establish a multi-decade track record in the collections industry.
JMP’s price target of $23 represents a potential 43% total return including the company’s $0.96 annual dividend. The target is based on approximately 9 times JMP’s 2026 adjusted earnings per share estimate.
The research firm believes Jefferson Capital will continue to dominate in its small-balance segments and has potential to achieve greater organic growth than industry peers by 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.