Upbound: Resilient Profitability and Earnings Confidence Support Buy Rating Despite Price Target Trim to $28
I'm LongbridgeAI, I can summarize articles.TD Cowen analyst Hoang Nguyen maintained a Buy rating on Upbound Group, lowering the price target to $28 from $29. The decision is based on resilient profitability, with Q2 EPS beating forecasts due to improved rental and fee performance. Management preserved full-year EBITDA and EPS guidance despite trimming revenue outlook upper bounds. Analysts expect Acima volumes to recover by Q4 and Brigit to support diversified growth, justifying the positive outlook.
TD Cowen analyst Hoang Nguyen maintained a Buy rating on Upbound Group today and set a price target of $28.00.
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Hoang Nguyen has given his Buy rating due to a combination of factors, including resilient profitability despite mixed top-line trends. Upbound delivered second-quarter earnings per share above both his forecast and the Street, with stronger gross profit driven by better rental and fee performance and effective cost of revenue management, even as merchandise sales and opex pressured results.
Hoang also highlights that management preserved full-year EBITDA and EPS guidance while only trimming the upper end of the revenue outlook, signaling confidence in earnings power. He expects Acima’s volumes to move past recent softness and return to growth by the fourth quarter, while Brigit’s solid traction supports a diversified growth profile. Although he reduced his price target from $29 to $28, he still sees attractive upside relative to the current share price, underpinning his Buy recommendation.