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Investing.com - KeyBanc has maintained its Overweight rating and $45.00 price target on PROG Holdings (NYSE:PRG) following meetings with the company. According to InvestingPro data, PRG currently trades at an attractive P/E ratio of 6.7x and boasts a perfect Piotroski Score of 9, indicating strong financial health.
The firm expressed increased optimism about PRG’s buy-now-pay-later offering called Four, noting its potential to create significant value for the company in the future.
KeyBanc highlighted that PRG’s OBBBA initiative could generate more than $100 million in cash tax savings, while also noting a positive outlook for the company’s core leasing business.
The firm acknowledged ongoing headwinds facing PRG, including tighter credit decisioning and impacts from the Big Lots bankruptcy, which will continue to affect year-over-year comparisons through the first half of 2026.
Despite sluggish industry trends, KeyBanc sees value creation potential in PRG’s free cash flow yield exceeding 12% and believes Four could eventually be worth hundreds of millions of dollars or more.
In other recent news, PROG Holdings reported strong financial results for the second quarter of 2025, surpassing both earnings and revenue expectations. The company achieved an earnings per share of $1.02, which was notably higher than the projected $0.80, representing a 27.5% surprise. Revenue for the quarter was $604.7 million, exceeding the anticipated $589.09 million. Following these results, Raymond James raised its price target for PROG Holdings from $36 to $40, maintaining an Outperform rating on the stock. This adjustment was influenced by the company’s performance, which exceeded not only Raymond James’ estimates but also consensus forecasts and management’s guidance. Additionally, PROG Holdings announced a quarterly cash dividend of $0.13 per share, payable on September 4, 2025, to shareholders of record as of August 19, 2025. These developments reflect the company’s positive financial trajectory and its commitment to returning value to shareholders.
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