PROG Holdings, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Hoang Nguyen from TD Cowen maintained a Buy rating on the stock and has a $37.00 price target.
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Hoang Nguyen has given his Buy rating due to a combination of factors, including the company’s strong financial performance in the recent quarter. PROG Holdings reported earnings per share that exceeded both Nguyen’s and the market’s expectations, driven by higher-than-anticipated revenues from lease agreements and loan-related fees. Additionally, the gross margin surpassed estimates, indicating that consumers are staying in leases longer, which enhances lease yield.
Despite some softness in gross merchandise volume and leased assets, Nguyen notes that the company’s unit economics remain robust, particularly with the growth of their Four platform. Although there are some concerns about future revenue guidance due to the sale of Vive and potential tightening affecting low-end consumers, the overall profitability outlook has improved. Nguyen’s price target reflects confidence in the company’s ability to maintain strong earnings per share in the coming years.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $37.00 price target.