UPDATE: Jefferies Lowering Price Target On Dollar Financial (DLLR)

Jefferies & Co. is lowering its price target on shares of Dollar Financial DLLR to $25 from $26, but it still has a Buy rating on shares. In a note to investors, Jefferies writes, "DLLR announced late Tuesday that they are issuing at least 5M shares to pay down the credit facility used in their recent acquisition of Purpose Financial (MEM)." Jefferies went on to say, "The follow-on offering is a positive sign that DLLR management sees a robust deal pipeline and is tapping the equity markets at an opportune time to fuel its growth. Additional equity capital and a reduced debt burden should allow the company to pursue potential acquisition targets in earnest. A secondary issuance was our number one near term concern for the stock. With that overhang gone, we reiterate our Buy rating, especially on any weakness in the share price due to this issuance." Shares of DLLR lost $1.16 in after-hours trading yesterday to close at $20.61.