Craig-Hallum bullish on Rent-A-Center, starts coverage with a Buy

As previously reported, Craig-Hallum analyst Alex Fuhrman initiated coverage of Rent-A-Center with a Buy rating and $40 price target. Rent-A-Center is a best-in-class lease-to-own operator that should be one of the biggest beneficiaries of falling inflation, the analyst argues. With the stock already down almost two-thirds from its 2021 peak, Fuhrman thinks the worst-case-scenario is already priced into the shares and Rent-A-Center is well positioned for significant growth in the next economic cycle. In the meantime, Rent-A-Center’s 5.8% dividend yield gives investors a compelling incentive to wait, he adds. With signs already emerging that inflation is easing and consumer credit is tightening, investors might not have to wait long, the analyst says.