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Upbound Group: Undervalued Stock with Promising Growth Prospects Driven by Brigit’s Expansion

Upbound Group: Undervalued Stock with Promising Growth Prospects Driven by Brigit’s Expansion

Analyst Vincent Caintic from BTIG maintained a Buy rating on Upbound Group and keeping the price target at $28.00.

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Vincent Caintic has given his Buy rating due to a combination of factors that highlight the potential for Upbound Group’s stock to appreciate. The sum of the parts valuation indicates a significant upside, with projections of $26 per share based on 2026 EBITDA and $38 per share on 2027 EBITDA. These valuations are derived from peer comparisons, suggesting that Upbound’s current market valuation is undervalued compared to its peers.
Furthermore, the growth prospects for Brigit, a key component of Upbound, are particularly promising, with expected EBITDA growth rates of 87% in 2026 and 128% in 2027. This growth is fueled by Brigit’s ability to leverage its cash flow underwriting to expand its customer base and innovate its financial products. Despite concerns about the subprime consumer market, Brigit’s resilience during challenging times and the potential synergies with Acima and Rent a Center further bolster the positive outlook for Upbound Group.

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