TD Cowen starts Credit Acceptance at Underperform, sees earnings pressured

TD Cowen analyst Moshe Orenbuch initiated coverage of Credit Acceptance with an Underperform rating and $360 price target. The stock’s valuation is at a significant premium to Ally Financial (ALLY) and other financial companies, but its earnings are expected to be more pressured over the coming year, the analyst tells investors in a research note. The firm added that competition is moderating, but regulatory pressures remain “very significant” with CFPB lawsuit and subpoenas from multiple states.