Oppenheimer analyst Brian Nagel maintained a Buy rating on Conn’s (NASDAQ: CONN) today and set a price target of $40. The company’s shares closed yesterday at $25.65.
Nagel wrote:
“For the past several quarters, we have recommended CONN as one of the most compelling, albeit speculative, smaller-cap names in Hardlines, on prospects for a meaningful turnaround at the chain under the leadership of new management. In many ways, the Q1:18 (Apr.) results and updated guidance the company reported today represent the key data points we were awaiting and a significant step forward. In Q1, retail sales picked up while core credit trends also improved. Significant “operational slack” remains in the CONN business model. We remain of the view that the market is way too pessimistic toward near- and longer-term prospects for the shares, and is significantly underestimating the underlying EPS power of a well-run, disciplined CONN business. Our $40 price target implies meaningful upside potential from here.”
According to TipRanks.com, Nagel is a 4-star analyst with an average return of 6.6% and a 63.2% success rate. Nagel covers the Services sector, focusing on stocks such as Restoration Hardware Holdings Inc, Dick’s Sporting Goods, and Advance Auto Parts.
Conn’s has an analyst consensus of Strong Buy, with a price target consensus of $42.
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Based on Conn’s’ latest earnings release for the quarter ending January 31, the company reported a quarterly net profit of $3.2 million. In comparison, last year the company had a GAAP net loss of $2.58 million.
Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CONN in relation to earlier this year. Earlier this month, Bob Martin, a Director at CONN bought 10,000 shares for a total of $169,300.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Conn’s, Inc. is holding company, which engages in the retail and provision of consumer goods and related services in addition to proprietary credit solutions for its core credit-constrained consumers through retail stores and its website. It operates through the Retail and Credit segments.
