Analyst Moshe Orenbuch from TD Cowen maintained a Buy rating on Enova International and increased the price target to $140.00 from $137.00.
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Moshe Orenbuch has given his Buy rating due to a combination of factors influencing Enova International’s performance. The company’s third-quarter earnings per share exceeded expectations, primarily due to lower operational expenses in areas such as marketing and general administration, which offset slightly lower net revenue. This operational efficiency, combined with management’s clear indication of accelerating consumer growth, particularly in their line of credit product, is expected to drive future earnings growth.
Additionally, while consumer lending showed slower growth, the small business lending segment demonstrated robust loan growth and higher yields, leading to stronger-than-expected revenue. The company’s ability to maintain stable credit across its portfolios and its strategic flexibility to shift focus between consumer and small business lending to optimize returns further supports the positive outlook. This diversified model and nimble underwriting approach highlight Enova’s potential for continued success, justifying the Buy rating.
According to TipRanks, Orenbuch is a top 100 analyst with an average return of 23.0% and a 69.79% success rate. Orenbuch covers the Financial sector, focusing on stocks such as American Express, SLM, and OneMain Holdings.
In another report released on October 22, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $127.00 price target.