Moshe Orenbuch, an analyst from TD Cowen, has initiated a new Buy rating on PROG Holdings (PRG).
Moshe Orenbuch has given his Buy rating due to a combination of factors that indicate a positive outlook for PROG Holdings. He highlights the current favorable conditions in the lease-to-own (LTO) industry, such as decreased inflation, improved consumer confidence, and real wage growth for subprime consumers, suggesting an improved sentiment toward LTO companies. Furthermore, Orenbuch notes the market’s current undervaluation of PROG Holdings compared to its historical average, which he views as an opportunity for growth in valuation over the next few quarters.
Additionally, Orenbuch’s optimism regarding PROG Holdings is also based on the company’s proficiency as a virtual LTO provider, which is expected to deliver faster long-term growth compared to store-based LTO models. He points out that PROG’s Progressive Leasing is set to show positive year-over-year growth and has a history of less volatile business performance during challenging times, such as the pandemic. Moreover, PROG’s successful partnerships with large enterprises, like Best Buy and Lowe’s, provide a stable gross merchandise volume (GMV) and an edge over competitors, further reinforcing the Buy rating.
According to TipRanks, Orenbuch is a top 100 analyst with an average return of 21.0% and a 68.13% success rate. Orenbuch covers the Financial sector, focusing on stocks such as American Express, SLM, and Synchrony Financial.
In another report released on February 22, KeyBanc also reiterated a Buy rating on the stock with a $44.00 price target.
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PROG Holdings (PRG) Company Description:
Aaron’s, Inc. retails consumer electronics, computers, residential furniture, household appliances, and accessories. It engages in the lease ownership, lease and retail sale of products such as widescreen and liquid crystal display televisions, computers, living room, dining room and bedroom furniture, washers, dryers, and refrigerators. The company operates through the following business segments: Progressive Leasing, Aaron’s Business and Vive. The Progressive Leasing segment provides lease-purchase solutions on a variety of products, including furniture and appliance, jewelry, mobile phones and accessories, mattress, and automobile electronics and accessories. The Aaron’s Business segment offers furniture, home appliances, consumer electronics and accessories to consumers with a lease-to-own agreement. The Vive segment offers a variety of second-look financing programs originated through third-party federally insured banks to customers of participating merchants and, together with Progressive Leasing, allows the Company to provide retail partners. The company was founded by R. Charles Loudermilk, Sr. in 1955 and is headquartered in Atlanta, GA.
Read More on PRG:
- Infosys, PROG Holdings announce collaboration
- PROG Holdings, Infosys to collaborate on AI-powered experiences
- PROG Holdings price target lowered to $31 from $33 at Loop Capital
- PROG Holdings Announces Executive Transition and Shareholder Returns
- PROG initiates quarterly dividend, announces $500M share repurchase program
