
PRA Group (PRAA) Stock Forecast & Price Target
PRA Group (PRAA) Analyst Ratings
Bulls say
PRA Group Inc. reported a significant increase in purchase volume and cash collections within its Americas & Australia core segment, with an 18% year-over-year rise in purchase volume to $274 million and a 19% increase in cash collections to $267 million. Overall cash collections for the third quarter reached $477 million, marking a 14% year-over-year growth, while the company also saw an encouraging rise in portfolio income, totaling $216 million, which was up 14% from the previous year. Additionally, PRA Group has raised its return guidance for 2024, indicating an expectation of double-digit growth in cash collections and an 8%+ return on tangible equity, reflecting a robust outlook for the company's financial performance.
Bears say
PRA Group Inc. faces potential headwinds as a deterioration in the broader economy may lead to slower cash collections, impacting its ability to generate revenue from nonperforming loans. The company has experienced a slight decrease in estimated collections multiples for its core portfolio in the Americas and Australia for 2024, dropping to 2.10x from 2.11x in the second quarter, while its cash efficiency ratio of 60.1% is below the forecasted 61.2%. Additionally, the increase in the debt-to-adjusted trailing EBITDA ratio to 3.00x, up from 2.89x at the end of 2022, suggests growing leverage that may heighten financial risk amid a challenging economic landscape.
This aggregate rating is based on analysts' research of PRA Group and is not a guaranteed prediction by Public.com or investment advice.
PRA Group (PRAA) Analyst Forecast & Price Prediction
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