Atlanticus price target lowered to $37 from $42 at JMP Securities

JMP Securities analyst David Scharf lowered the firm’s price target on Atlanticus to $37 from $42 and keeps an Outperform rating on the shares. The firm has adopted a more cautious near-term outlook on origination volumes following discussions with management, and lowered its 2023 EPS estimate to $3.92 from $4.18 amid impacts from slower loan growth, lower yields on the portfolio, higher interest expense and a slightly higher charge-off rate, the analyst tells investors in a research note. JMP continues to believe that Atlanticus is differentiated from many peers based on its 20+ years of underwriting subprime credit, and the relatively uncrowded competitive landscape in subprime credit card and second-look POS financing.