Ezcorp pullback brings buying opportunity, says Canaccord

Canaccord analyst Brian McNamara reiterates a Buy rating on Ezcorp with a $15 price target after surveying 106 Ezpawn stores across the U.S. to assess whether strong pawn business trends have continued. The work leaves the firm encouraged that the business continues to perform well. The stock’s recent underperformance, driven technically by the company’s deletion from the Russell 2000 Index effective June 26, represents a buying opportunity “as the share price performance does not square with business fundamentals,” the analyst tells investors in a research note. Canaccord expects Ezcorp shares to rerate as the market starts to appreciate the company’s strong fundamentals, particularly during a potential economic downturn.