OppFi stock rating upgraded to Market Outperform at Citizens JMP

Thursday, OppFi Inc (NYSE: OPFI) received an upgrade from Citizens JMP, with analyst David Scharf raising the stock rating from Market Perform to Market Outperform and setting a new price target of $13.50. This adjustment indicates a potential 25% increase from Wednesday’s closing price of $10.84 and is founded on a 9x multiplier of the firm’s updated 2026 Adjusted EPS forecast. The stock has already shown strong momentum, with a 13% gain in the past week and an impressive 270% return over the last year, according to InvestingPro data.

Scharf’s optimistic stance on the all-digital subprime lender is reflected in his comments, where he notes a series of positive developments for the company. These include a stable credit profile, a resurgence in volume growth within a stringent credit environment, evidence of expanding operating leverage, and an improved funding and liquidity profile. InvestingPro data supports this view, showing strong financial health with a current ratio of 8.58 and revenue growth of 22% in the last twelve months. Furthermore, he points out that the competitive landscape remains relatively favorable for OppFi’s core high-APR personal loan products.

The upgrade comes after a previous downgrade on February 12, which Scharf clarifies was solely based on valuation concerns. Since then, Citizens JMP has increased their Adjusted EPS estimates for 2025 and 2026 by approximately 35% and 30%, respectively. This significant upward revision in earnings projections has contributed to the more positive outlook on OppFi’s stock.

The analyst also emphasizes the operational strengths of OppFi, citing the company’s ability to maintain a stable credit profile and accelerate volume growth, even as it continues to operate within a conservative credit box. This disciplined approach to lending has been complemented by the company’s demonstrated ability to leverage its operations efficiently.

In conclusion, the upgrade by Citizens JMP reflects a renewed confidence in OppFi’s business model and market position. The firm’s analysis suggests that OppFi is well-positioned to capitalize on its strategic advantages in the subprime lending space. Based on current metrics, InvestingPro analysis indicates the stock is trading above its Fair Value, with 13 additional ProTips and comprehensive financial metrics available to subscribers through the Pro Research Report.

In other recent news, OppFi Inc. reported a strong performance for the first quarter of 2025, with both earnings per share (EPS) and revenue exceeding market expectations. The company achieved an EPS of $0.38, significantly higher than the forecasted $0.14, and reported revenue of $140.27 million, surpassing the anticipated $134.01 million. This robust performance led to a 10% year-over-year revenue growth, driven by a 16% increase in net originations to $189 million. Additionally, OppFi’s adjusted net income rose sharply by 285% to $34 million, reflecting enhanced operational efficiency and profitability.

The company also raised its full-year 2025 revenue guidance to a range of $563-$594 million, representing a 7-13% increase. This optimistic outlook is supported by continued strong revenue momentum expected through 2025-2026. In terms of analyst activity, there were no specific upgrades or downgrades mentioned, but firms such as Wainwright and Citizens Capital Markets participated in the earnings call, reflecting interest in OppFi’s financial health and growth prospects.

OppFi’s management highlighted the company’s strategic vision and growth potential, emphasizing their commitment to becoming a leading digital finance platform in the alternative credit space. The company is exploring potential inorganic growth opportunities and remains confident in its financial position, as evidenced by a special dividend payout and a strong balance sheet. Overall, these developments underscore OppFi’s position as a key player in the digital finance sector, with a focus on sustainable growth and profitability.

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