Encore Capital downgraded to Market Perform from Outperform at Northland

Northland analyst Mike Grondahl downgraded Encore Capital to Market Perform from Outperform with a $58 price target ahead of Encore reporting results on February 22. Encore management has noted a few weak quarters due to collections normalizing post stimulus and the firm contends that 2023 consensus estimates need to drop closer to its $5.82 level versus the $7.00 level they are near currently. The risk of an impairment charge "is real due to soft collections" and higher interest rates will also lead to higher interest expense for Encore, the firm said.