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Investing.com - KeyBanc has maintained its Overweight rating and $45.00 price target on PROG Holdings (NYSE:PRG), highlighting the company’s potential for significant cash generation despite challenges in its main leasing business. According to InvestingPro data, PRG maintains a "GREAT" financial health score and boasts a perfect Piotroski Score of 9, indicating strong operational efficiency.
The investment firm sees PRG as an attractive small-cap value opportunity, noting the company is positioned to generate more than 20% of its market capitalization in incremental cash from two key sources: the sale of Vive assets and tax benefits from the OBBBA.
While PRG faces temporary challenges with its Gross Merchandise Volume (GMV), KeyBanc believes new retailer additions will set the stage for growth in 2026.
The firm points to PRG’s current valuation of 8.9 times estimated 2026 earnings, which sits below its 10-year average of 11.7 times, suggesting potential upside for investors.
KeyBanc also highlighted PRG’s underlying free cash flow of approximately 10% or more, excluding one-time items, as another factor supporting its positive outlook on the stock.
In other recent news, PROG Holdings Inc. reported its third-quarter results for 2025, delivering an earnings per share (EPS) of $0.90. This figure exceeded analyst expectations by 21.62%, as the forecast was set at $0.74. The company’s revenue reached $595.1 million, slightly surpassing projections, although it showed a decline from the previous year’s $606.1 million. Despite the positive earnings surprise, investor sentiment was cautious, influenced by broader market conditions and future guidance. These developments follow recent analysis from various firms, although specific upgrades or downgrades were not mentioned in the latest reports. The company’s financial performance remains a focal point for investors assessing its potential in the current economic climate.
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