Portfolio Recovery Associates Upgraded to Buy by Janney, $60 Target Maintained - Bid Higher Pre-Bell at $53.53Cristina Cantor (Author) Published Date : Jun 17, 2014 09:49 ET
Portfolio Recovery Associates (PRAA) received an investment-rating upgrade to buy from neutral Friday from Janney Capital Markets, which said a 10% selloff in the stock since its April 30 earnings report provides a buying opportunity.The firm kept at $60 its fair value estimate on the shares of the company, which purchases, collects and manages of portfolios of defaulted consumer receivables, saying the target is conservative and implies potential appreciation of 13%. We also believe that the company's conservative leverage structure should enable it to grow EPS either through a combination of additional business acquisitions or substantial share repurchases, neither of which are factored into our EPS estimates and valuation, Janney added. PRAA was bid higher in recent pre-market trading after closing Thursday at $53.03, in a 52-week range of $45.83 to $63.96.
Portfolio Recovery Associates Upgraded to Buy by Janney, $60 Target Maintained - Bid Higher Pre-Bell at $53.53