
PRA Group (PRAA) Stock Forecast & Price Target
PRA Group (PRAA) Analyst Ratings
Bulls say
PRA Group Inc. has demonstrated significant year-over-year growth, with legal cash collections rising 27% to $125 million in the third quarter and cash collections overall reaching $542 million, reflecting a 14% increase that exceeded projections. The company's portfolio income totaled $259 million, marking a 20% increase from the previous quarter, while total revenue rose 11% to $311 million, surpassing forecasts due in part to a substantial positive change in expected recoveries. Management's optimism is bolstered by expectations of continued stability in market volumes, particularly in the U.S., further supporting favorable future collections outcomes.
Bears say
PRA Group Inc. has demonstrated a concerning trend in revenue performance, with a 47% year-over-year decline in purchase volume in its Americas & Australia core segment, contrasting with a 33% increase in the Europe core segment. The company's average portfolio yield of 23% over the past five years falls significantly short of ECPG's 15% higher yield, raising concerns about its competitive position in the market. Furthermore, ongoing economic deterioration poses risks to cash collections, with current metrics revealing a decline in collections as a percentage of average receivables and persistently high cash efficiency ratios relative to ECPG, indicating a challenging operating environment.
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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