Credit Acceptance price target raised to $550 from $440 at Stephens

Stephens raised the firm’s price target on Credit Acceptance to $550 from $440 and keeps an Equal Weight rating on the shares. Q4 GAAP EPS beat consensus, driven entirely by credit provisions that came in 14% below consensus estimate, the analyst tells investors. Loan growth continues to expand and dealer engagement is increasing, notes the analyst, who says that “at some point, these newer, higher quality loans should offset the weaker performance of 2021-2022 vintages.”