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Investing.com - Raymond (NSE:RYMD) James has raised its price target on PROG Holdings (NYSE:PRG) to $40.00 from $36.00 while maintaining an Outperform rating on the stock. According to InvestingPro analysis, the stock appears undervalued, trading at an attractive P/E ratio of 5.6x.
The price target increase follows PROG’s quarterly results that exceeded expectations, with revenue, non-GAAP EPS, and adjusted EBITDA all coming in ahead of Raymond James estimates, consensus forecasts, and management’s guidance range. The company’s EBITDA stands at $418 million for the last twelve months, with a healthy revenue growth of 4.6%.
Management has raised its 2025 guidance, reflecting the second-quarter performance while maintaining some conservatism for the second half of the year due to a lower year-over-year portfolio size at the end of Q2 and the P&L impact as Big Lots (NYSE:BIG) customers exit the portfolio.
Despite pressure on consumer demand for home durable products, Raymond James notes that Progressive’s core business remains intact, with slight GMV growth during the quarter excluding Big Lots and loss rates within target ranges.
The firm highlighted PROG’s solid balance sheet and cash flow generation, which provides room for additional share repurchases that are not assumed in the company’s EPS guidance.
In other recent news, PROG Holdings Inc. 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 exceeded the projected $0.80, representing a 27.5% surprise. Revenue was reported at $604.7 million, slightly above the anticipated $589.09 million. These results highlight a positive performance for the company in this period. Analysts had forecasted lower figures, making the actual results noteworthy for investors. The financial outcome reflects positively on the company’s operational efficiency and market position. Investors and analysts are closely watching these developments as they consider future prospects for PROG Holdings.
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