TD Cowen starts Upbound Group at Outperform, calls top LTO pick

TD Cowen initiated coverage of Upbound Group with an Outperform rating and $43 price target, calling it the firm’s top pick in the lease-to-own, or LTO, sector. The firm believes the LTO industry has long-term growth potential in line with the economy, though is more cyclical, the analyst tells investors. The firm likes Upbound for its partial exposure to virtual LTO through its Acima business, which it sees having faster long-term growth potential than the store-based LTO business, the analyst added.