
PRA Group (PRAA) Stock Forecast & Price Target
PRA Group (PRAA) Analyst Ratings
Bulls say
PRA Group Inc. has demonstrated strong financial performance, with legal cash collections rising 27% year-over-year to reach $125 million in the third quarter. The company's total revenue increased by 11% to $311 million, surpassing expectations due to a significant positive change in expected recoveries of $51 million. Additionally, cash collections for the quarter totaled $542 million, reflecting a 14% year-over-year increase, driven by notable growth in both the Americas & Australia and European segments.
Bears say
PRA Group's stock facing a negative outlook is underscored by a significant earnings miss, with reported earnings at $0.09 compared to a Street-high estimate of $0.54, driven primarily by a 4% decline in collections. Compounding this issue, the company has lowered its full-year guidance for Return on Average Tangible Equity from an expected 12% to below that benchmark, reflecting management's cautious stance following the first-quarter miss. Additionally, the portfolio yield of 23.3% was slightly under expectations, and revenue fell to $270 million, well short of the estimated $296 million, further contributing to concerns about top-line performance and overall financial health.
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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