Moshe Orenbuch, an analyst from TD Cowen, maintained the Hold rating on Enova International (ENVA – Research Report). The associated price target was raised to $130.00.
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Moshe Orenbuch has given his Hold rating due to a combination of factors. Although Enova International reported a fourth-quarter EPS that exceeded expectations, driven by favorable changes in fair value, there were aspects that balanced this positive outcome. The revenue was slightly below predictions for both consumer and small business lending, despite showing an overall strong net revenue margin. Additionally, while operating expenses were higher primarily due to marketing costs, other expense categories were lower, which plays a crucial role in the overall assessment.
Looking ahead, Enova’s management anticipates a return to a higher tax rate by 2025 and projects origination growth alongside a significant EPS growth. Despite the positive growth trajectory in both consumer and small business sectors and a solid credit performance, these projections introduce some uncertainties. Therefore, while recognizing the company’s strong performance and potential, the Hold rating reflects a balanced view of both the opportunities and risks involved.
According to TipRanks, Orenbuch is a top 100 analyst with an average return of 22.6% and a 69.57% success rate. Orenbuch covers the Financial sector, focusing on stocks such as SLM, Discover Financial Services, and Capital One Financial.