Encore Capital (ECPG) Receives a Buy from Oppenheimer


Oppenheimer analyst Dominick Gabriele maintained a Buy rating on Encore Capital (ECPG) today and set a price target of $39. The company’s shares closed yesterday at $33.20.

Gabriele commented:

“ECPG reported adjusted EPS of $1.45 vs. our/consensus’ $1.07/$1.19. The company is well positioned to take advantage of an improving US debt buying environment. Management intends to allocate more of its capital in the US as it sees better returns here than in Europe. It continues to show improvement in the cost to collect as the mix of channel used rotates away from legal and into call center. We think this is likely to continue as fresh paper makes up almost all the $480M in already secured flow agreements. The 2018 vintage is also off to a solid start with better collection rates and stable revenue recognition than 2017 first-year metrics. We see an improving EBIT/ Invested capital trajectory with room for upside and thus continue to recommend. We raise our price target to $39 from $37.”

According to TipRanks.com, Gabriele is a 2-star analyst with an average return of 0.7% and a 52.2% success rate. Gabriele covers the Financial sector, focusing on stocks such as Discover Financial Services, Credit Acceptance Corp, and Santander Consumer USA.

Currently, the analyst consensus on Encore Capital is a Moderate Buy with an average price target of $39.

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Encore Capital’s market cap is currently $1.02B and has a P/E ratio of 11.10. The company has a Price to Book ratio of 1.32.

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Encore Capital Group, Inc. engages in the provision of debt management and recovery solutions for consumers and property owners across a broad range of financial assets. It operates through the following geographical segments: United States, International, Europe, and Other. The company was founded in April 1999 and is headquartered in San Diego, CA.

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