
PRA Group (PRAA) Stock Forecast & Price Target
PRA Group (PRAA) Analyst Ratings
Bulls say
PRA Group Inc. has demonstrated notable growth in legal cash collections, rising 27% year over year to $125 million in the third quarter, which signifies a robust demand for its services in acquiring and collecting nonperforming loans. The company's portfolio income of $259 million for the quarter reflects a 20% increase from the previous year, underscoring the effectiveness of its collection strategies and robust operational improvements that have led to expanding margins. Additionally, total third-quarter revenue reached $311 million, an 11% increase year over year, driven by strong performance in cash collections and a favorable net change in expected recoveries, indicating a positive outlook for future financial performance.
Bears say
PRA Group Inc. experienced a significant earnings shortfall in the first quarter, reporting earnings of $0.09 compared to an estimated $0.54, primarily driven by a 4% decline in collections. The company also reduced its full-year guidance for Return on Average Tangible Equity from 12% to below that level, reflecting concerns following the earnings miss and caution regarding post-tariff impacts. Additionally, revenue fell to $270 million, missing the $296 million estimate due to lower-than-expected portfolio yield and a decline in expected recoveries.
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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