In a report released today, Moshe Orenbuch from TD Cowen maintained a Buy rating on FirstCash (FCFS – Research Report), with a price target of $150.00.
Moshe Orenbuch has given his Buy rating due to a combination of factors that highlight FirstCash’s strong financial performance and positive outlook. FirstCash reported earnings per share that exceeded both the firm’s estimates and market consensus, driven by higher revenues and lower costs, resulting in a significant increase in gross profit. The U.S. pawn lending segment showed robust growth, supported by increased demand and favorable gold prices, while the company’s AFF profitability also surpassed expectations, prompting management to raise their full-year guidance.
Additionally, the company demonstrated strong capital deployment, focusing on share repurchases, and expressed confidence in potential store acquisitions in the future. The positive performance across both U.S. and LATAM pawn segments, along with the improved AFF outlook, contributed to a very favorable quarterly assessment. Consequently, Orenbuch adjusted the earnings estimates for the coming years and set a price target of $150, reflecting confidence in FirstCash’s continued growth and profitability.