In a report released today, Dominick Gabriele from Oppenheimer maintained a Hold rating on Pra Group (PRAA). The company’s shares closed on Friday at $30.73.
Gabriele said:
“PRAA reported 4Q18 GAAP $0.33 vs. consensus’ $0.29. This included a $27M gain, ~$5M derivatives charge, $21M allowance charge and ~15% tax rate vs. our 18%. Given the allowance charge is likely a re-evaluation over 2018 we attribute $5M to 4Q18. All in we put “core” 4Q18 EPS at ~$0.17. Prior to earnings we pointed out consensus was likely to move lower for 2019/2020 due to higher legal collections, thus there could be pressure on the stock. We think consensus has mostly come in line at this point. A highlight of the quarter; PRAA was able to monetize its servicing platform while keeping similar economics on portfolios it owns. We see this as testament to management’s resourcefulness and focus on cutting fixed expenses were possible.”
According to TipRanks.com, Gabriele is a 2-star analyst with an average return of 1.4% and a 58.3% success rate. Gabriele covers the Financial sector, focusing on stocks such as Discover Financial Services, Credit Acceptance Corp, and Santander Consumer USA.
The the analyst consensus on Pra Group is currently a Moderate Buy rating.
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The company has a one-year high of $43.75 and a one-year low of $22.62. Currently, Pra Group has an average volume of 307.9K.
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PRA Group, Inc. engages in the purchase, collection and management of portfolios of defaulted consumer receivables. It focuses on the acquisition, collection, and processing of both unpaid and normal course accounts receivable originally owed to credit grantors, governments, retailers and others.
