Companies in the Services sector have received a lot of coverage today as analysts weigh in on Pra Group (NASDAQ:PRAA) and Wendy’s (NASDAQ:WEN).
Pra Group (PRAA)
In a report released today, Ben Chittenden from Oppenheimer maintained a Hold rating on Pra Group. The company’s shares closed yesterday at $36.20.
Chittenden said:
“PRAA reported a mixed quarter. On the one hand, 2Q18 was essentially in line with our/consensus expectations. Downside came from guidance of elevated legal expenses going forward. In retrospect, it’s not entirely unexpected (record purchases in last few quarters/significant shift toward fresher paper/call center collections as a percentage of total near typical peaks), but it did catch most by surprise. The issue is, at this point, it doesn’t dramatically accelerate our cash collections assumptions. So higher expense assumption, there is some offset from the channel shift, but net- net, without the revenues, it knocks a decent amount off our 2019 EPS estimate. We still think the backdrop for debt collectors remains favorable over the medium term, but for the time being prefer ECPG.”
According to TipRanks.com, Chittenden is a 3-star analyst with an average return of 1.7% and a 55.2% success rate. Chittenden covers the Financial sector, focusing on stocks such as Discover Financial Services, Credit Acceptance Corp, and Santander Consumer USA.
Currently, the analyst consensus on Pra Group is a Hold with an average price target of $42.
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Wendy’s (WEN)
Wedbush analyst Nick Setyan maintained a Buy rating on Wendy’s today and set a price target of $20. The company’s shares closed yesterday at $17.26.
According to TipRanks.com, Setyan is a 4-star analyst with an average return of 8.5% and a 65.6% success rate. Setyan covers the Services sector, focusing on stocks such as Del Taco Restaurants, Jack In The Box Inc, and Cheesecake Factory.
Wendy’s has an analyst consensus of Moderate Buy, with a price target consensus of $20.
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