Gold bars to be exempt from tariffs, White House clarifies
Tuesday, Oportun Financial Corp (NASDAQ:OPRT), currently trading at $6.75 with a market capitalization of $244 million, maintained its Market Perform rating from JMP analysts, as the firm continues to streamline operations and focus on its primary lending products. The company is projected to reduce its full-year operating expenses by approximately 45% from the peak in 2022, demonstrating a strategic downsizing of costs. According to InvestingPro data, the company’s net income is expected to grow this year, with analysts predicting a return to profitability.
Analysts at JMP highlighted Oportun Financial’s successful exit from unprofitable ventures and a renewed concentration on its core lending product. The company’s credit performance has also been viewed positively, with the most recent loans—referred to as the "front book"—now constituting 96% of the loan portfolio. This figure is anticipated to increase to 99% by the end of 2025.
Following a 9% increase in share price after the fourth quarter report and a 72% rise year-to-date, JMP analysts consider the stock to be fairly valued. The valuation is approximately 1.0x the firm’s fiscal year 2025 year-ending tangible book value estimate, while current Price-to-Book stands at 0.67x. InvestingPro’s Fair Value analysis suggests the stock is currently fairly valued. For deeper insights into Oportun’s valuation metrics and growth potential, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, covering over 1,400 US stocks.
The decision to uphold the Market Perform rating is partly due to what JMP refers to as a "show me" discount. This cautious approach is advised based on Oportun Financial’s history of credit volatility, with several instances of credit misses after periods of accelerated portfolio growth. JMP suggests that investors would be prudent to reassess the company’s performance after observing a few more quarters. This aligns with InvestingPro’s observation of high price volatility, though the stock has shown remarkable strength with a 125% return over the past six months and a 55% gain over the last year.
In other recent news, Oportun Financial Corp reported its Q1 2025 earnings, significantly exceeding market expectations. The company announced an earnings per share (EPS) of $0.40, far surpassing the forecasted $0.05, and reported revenue of $235.9 million, which also exceeded the anticipated $228.66 million. This strong financial performance was attributed to a 59% year-over-year growth in secured personal loans and a 15% reduction in operating expenses. Additionally, Oportun maintained a cautious growth approach due to macroeconomic uncertainties, with a strategic focus on secured loans and cost management. The company reiterated its full-year 2025 guidance, projecting adjusted EPS growth of 53-81% within a range of $1.1 to $1.3. Despite reducing its originations growth expectation to 10%, Oportun aims to achieve a GAAP return on equity of 20-28% in the long term. Analyst firms have not reported any recent upgrades or downgrades for Oportun. The company’s proactive stance in monitoring macroeconomic conditions and adjusting strategies accordingly remains a key focus.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.