Canaccord starts Ezcorp with a Buy, says discount ‘undeserved’

As previously reported, Canaccord analyst Brian McNamara initiated coverage of Ezcorp (EZPW) with a Buy rating and $14 price target. Ezcorp is the number two player in pawn and pre-owned and recycled retail in the U.S. and Latin America with 1,175 stores, noted McNamara, who said he has increased confidence that Ezcorp should benefit from favorable industry and company-specific factors after visiting 24 pawn stores across Texas a few days before Christmas. He believes Ezcorp trades at an "undeserved" discount to FirstCash (FCFS), its closest and larger peer, and he expect Ezcorp shares to rerate as the market starts to appreciate its strong fundamentals in a potential economic downturn.