JMP Securities reiterates Market Outperform rating on PRAA stock

Published 09/09/2025, 10:08
JMP Securities reiterates Market Outperform rating on PRAA stock

Investing.com - JMP Securities has reiterated its Market Outperform rating and $24.00 price target on Portfolio Recovery Associates (NASDAQ:PRAA) stock, representing significant upside from the current price of $17.21. According to InvestingPro data, analyst targets range from $20 to $33, suggesting strong potential for price appreciation.

The firm expressed minimal concern about Senate bill S.2495, which addresses offshore customer service operations, noting the legislation appears to focus only on prospectively moving existing U.S. seats offshore rather than affecting legacy offshore operations.

JMP Securities indicated the penalties outlined in the bill do not appear to apply to companies like Portfolio Recovery Associates, minimizing potential financial impact.

The requirement in the legislation that would allow consumers to request transfers to U.S.-based live agents represents an insignificant portion of calls for these companies, according to the firm’s analysis.

JMP Securities also expressed doubt about the bill’s legislative future, suggesting it is unlikely to advance beyond the Senate’s Commerce, Science, and Transportation Committee, which is chaired by Senator Ted Cruz (R-TX).

In other recent news, Portfolio Recovery Associates reported its second-quarter 2025 earnings, significantly surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $1.08, far exceeding the anticipated range of $0.41 to $0.44, with a notable portion of this figure attributed to a one-time gain from the sale of its Brazilian servicing business. However, the company’s revenue slightly missed projections, coming in at $287.69 million against the forecasted $291.99 million.

Additionally, JMP Securities raised its price target for Portfolio Recovery Associates to $24.00 from $23.00 while maintaining a Market Outperform rating. This adjustment follows the company’s impressive earnings performance. The earnings surprise of 63.64% was a key factor in JMP Securities’ decision. These developments highlight the company’s recent financial activities and analyst perspectives.

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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