
ECPG Stock Forecast & Price Target
ECPG Analyst Ratings
Bulls say
Encore Capital Group Inc. reported robust financial performance in the third quarter of 2024, with portfolio purchases increasing by 10% year-over-year to $282.5 million, largely driven by favorable market conditions and a significant boost in U.S. purchases. The company also demonstrated strong collection figures, with MCM collections rising by 22% year-over-year to $402 million, contributing to an overall cash generation increase of 22% in the same quarter. Furthermore, the first nine months of FY24 showcased record performance metrics, with purchasing up by 10%, collections up by 15%, and cash generation up by 18% compared to the previous year, indicating a positive trend for the company moving forward.
Bears say
The outlook for Encore Capital Group Inc. appears negative due to persistent consumer confidence challenges, which could lead to a decline in collections from already weakened consumers. The company's projected earnings per share (EPS) for 2025 has been significantly reduced from $7.00 to $4.50, primarily due to lower anticipated revenues from receivables portfolios and diminishing yields. Furthermore, while management expects leverage to decrease from 2.7x to potentially 2.5x by March 2025, risks associated with an economic downturn could impair this trajectory and slow cash collections.
This aggregate rating is based on analysts' research of Encore Capital Group and is not a guaranteed prediction by Public.com or investment advice.
ECPG Analyst Forecast & Price Prediction
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