Oppenheimer Remains a Buy on Credit Acceptance Corp

Oppenheimer analyst Ben Chittenden maintained a Buy rating on Credit Acceptance Corp (NASDAQ: CACC) today and set a price target of $365. The company’s shares closed on Friday at $322.71.

Chittenden commented:

“We viewed the fundamentals of Credit Acceptance’s 1Q18 earnings as very favorable. Loan growth continued to accelerate, driven by faster dealer/productivity growth. The troubled ’15/’16 vintages are now a much smaller piece of the remaining cash flows to collect, and thus the collections risk seems further reduced. The NY DFS disclosure was a negative, but we are comfortable with the risk for now. Reported EPS of $6.17 compares to our/consensus $6.26/$6.10 estimates. PT earnings were right in line driven by in-line revenue/slightly higher people expenses to drive the faster loan growth/better credit vs. expectations. We continue to view the story as misunderstood and recommend investors own the stock as the fundamentals are improving yet the narrative around the stock is still very negative.”

According to TipRanks.com, Chittenden is a 3-star analyst with an average return of 1.1% and a 54.0% success rate. Chittenden covers the Financial sector, focusing on stocks such as Discover Financial Services, Capital One Financial, and Synchrony Financial.

Credit Acceptance Corp has an analyst consensus of Moderate Buy, with a price target consensus of $365.

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The company has a one-year high of $377.82 and a one-year low of $210.26. Currently, Credit Acceptance Corp has an average volume of 114.3K.

Based on the recent corporate insider activity of 87 insiders, corporate insider sentiment is negative on the stock.

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Credit Acceptance Corp. engages in the the provision of dealer financing programs that enables automobile dealers to sell vehicles to consumers, regardless of its credit history. Its financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers. The company was founded by Donald A.