Prog Holdings initiated with an Overweight at Stephens

Stephens initiated coverage of Prog Holdings (PRG) with an Overweight rating and $60 price target The firm initiated coverage on 13 alternative consumer finance names, saying COVID-19 and the corresponding $6 trillion of stimulus impacted nonprime finance companies across the board, in some positive and some negative lights. Some industries like auto and lenders with longer duration portfolios are still feeling some lingering impacts, including affordability and underperforming back-books, respectively, the analyst tells investors in a research note. Stephens believes affordability issues are weighing on sales and more than offsetting consumer’s increased need for financing and some tighter credit broadly. It sees challenging conditions persisting, but “solid companies emerging on the other side in a less competitive world.”