
PRA Group (PRAA) Stock Forecast & Price Target
PRA Group (PRAA) Analyst Ratings
Bulls say
PRA Group Inc. reported a 27% year-over-year increase in legal cash collections for the third quarter, reaching $125 million, which illustrates the effectiveness of its collection strategies. Additionally, portfolio income rose 20% to $259 million, aligning closely with expectations and reinforcing the company's robust operational performance. Overall, total revenue increased by 11% to $311 million, exceeding forecasts and driven by a net positive change in expected recoveries, indicating strong future growth potential in both the U.S. and European markets.
Bears say
PRA Group Inc. has experienced a significant decline in its core purchase volume in the Americas and Australia, with a 47% year-over-year decrease, contrasting with a modest 33% increase in Europe, highlighting regional disparities in performance. The company's average overall portfolio yield of 23% over the past five years is notably 15% lower than that of ECPG, indicating persistent underperformance in revenue generation from its loan portfolios. Additionally, PRAA's collections as a percentage of average receivables have decreased to 11.9%, alongside a higher Cash Efficiency Ratio compared to ECPG, suggesting increasing operational inefficiencies and pressure on profitability that could lead to future impairment charges impacting earnings per share.
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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