TD Cowen analyst Hoang Nguyen maintained a Buy rating on Upbound Group today and set a price target of $31.00.
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Hoang Nguyen has given his Buy rating due to a combination of factors that highlight both strengths and challenges within Upbound Group’s financial performance. The company reported third-quarter earnings per share (EPS) of $1.00, which aligned with Nguyen’s expectations and surpassed the consensus estimate of $0.98. This was largely driven by better-than-expected revenue across various segments, including rentals, fees, and merchandise sales, which collectively resulted in a revenue beat of approximately 2%.
Despite these positive aspects, Nguyen noted that the higher operational expenses offset much of the revenue gains. Additionally, while certain areas like RAC and Brigit showed improvement, Acima faced challenges with increased losses in new monthly vintages, necessitating tighter underwriting measures. These factors contributed to a downward adjustment in the company’s EBITDA and EPS guidance for 2025. Nonetheless, Nguyen maintains a Buy rating, reflecting confidence in the company’s ability to navigate these challenges and improve performance over time.
Based on the recent corporate insider activity of 36 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of UPBD in relation to earlier this year.