
PRA Group (PRAA) Stock Forecast & Price Target
PRA Group (PRAA) Analyst Ratings
Bulls say
PRA Group Inc. reported significant growth in key financial metrics, with legal cash collections rising by 27% year over year to $125 million in the third quarter, and total cash collections reaching $542 million, which is a 14% increase compared to the previous year. Notably, portfolio income increased by 20% to $259 million, and total revenue for the quarter was $311 million, reflecting an 11% growth that outpaced expectations, driven by a net positive change in expected recoveries. Additionally, the company has demonstrated operational improvements, evidenced by expanding margins and favorable growth in estimated remaining collections (ERC) and adjusted EBITDA, further supporting a positive outlook for its financial performance.
Bears say
PRA Group experienced a significant earnings shortfall in the latest quarter, reporting $0.09 per share compared to the estimated $0.54, attributed to a 4% decrease in collections despite adjusted EBITDA being relatively stable. Additionally, the company’s management reduced its full-year guidance for Return on Average Tangible Equity from the anticipated 12% to below that level, indicating broader concerns regarding future profitability. Compounding these issues, the portfolio yield of 23.3% fell short of estimates, alongside a revenue miss of $270 million compared to the $296 million forecast, reflecting ongoing challenges in expected recoveries and overall revenue generation.
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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