Loop Capital upgrades FirstCash to Buy, sees sell-off as overdone

As previously reported, Loop Capital analyst Anthony Chukumba upgraded FirstCash to Buy from Hold with a price target of $140, up from $125. Last week’s earnings release-driven selloff was overdone, particularly given the continued strength in the company’s core U.S. Pawn business, the analyst tells investors in a research note. FirstCash’s problem child” American First Finance is also significantly outperforming its fellow lease-to-own providers and contributes a relatively small portion of FirstCash’s earnings, Loop states. The firm adds that FirstCash continues to generate strong free cash flow, which the company consistently returns to its stockholders through cash dividends and share repurchases.