Stock market today: Stocks fall as investors rotate out of tech into Jackson Hole
On Thursday, JMP analysts maintained a Market Outperform rating and a $35.00 price target for PRA Group (NASDAQ:PRAA), a company specializing in debt purchasing. Trading at $23.66, the stock shows significant upside potential to the analyst target. According to InvestingPro data, PRA Group appears fairly valued based on its proprietary Fair Value model. The endorsement followed PRA Group’s recent announcement of positive quarterly earnings and an increased purchasing volume. The analysts noted the company’s refined 2025 guidance metrics, which were updated from three months prior, enhancing their outlook on purchasing and earnings while keeping collections and margin forecasts steady.
PRA Group’s performance has been characterized by a blend of cyclical and operational factors that have contributed to consistent gains throughout the previous year. With impressive revenue growth of 39% in the last twelve months and a market capitalization of $936 million, the company has experienced near-record purchasing volumes in Europe and favorable supply and pricing dynamics in the U.S. market. InvestingPro analysis reveals two key insights: the company is trading at an attractive P/E ratio relative to its growth potential, and net income is expected to grow this year. Subscribers can access 4 additional exclusive ProTips and comprehensive financial analysis through the Pro Research Report. Additionally, PRA Group has seen improvements in legal collections, thanks in part to ongoing investments in this area.
The company’s efforts to offshore collections have also shown significant progress. This strategic move is part of PRA Group’s broader operational advancements. Moreover, the company has successfully improved its funding profile, which now features increased capacity and extended maturities.
These positive developments have been instrumental in driving PRA Group’s growth and are reflected in the analysts’ continued confidence in the company’s stock. The $35.00 price target suggests that JMP analysts anticipate the stock to perform well in the market going forward.
In other recent news, PRA Group, Inc. announced its plan to offer an additional $100 million in senior notes due in 2030. These notes will carry the same terms and conditions as the previously issued $400 million senior notes, with the primary differences being the date of issuance and the issue price. The company intends to use the net proceeds from this offering to repay $100 million of its outstanding borrowings under its North American revolving credit facility. This offering is aimed at qualified institutional buyers under Rule 144A and certain non-U.S. persons under Regulation S, and it will not be registered under the Securities Act or any state securities laws. The notes will be guaranteed by PRA Group’s domestic subsidiaries involved in the company’s North American Credit Agreement. This development follows the company’s strategy to manage its debt and financial obligations effectively. The information regarding this offering was released in a press statement by PRA Group, Inc.
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