Stephens Downgrades PROG Holdings On Muted Growth Expectations

Stephens analyst Vincent Caintic downgraded PROG Holdings Inc PRG to Equal Weight from Overweight and lowered the price target to $57 (an upside of 21%), from $59.
His previously "optimistic" GMV growth expectations are now "muted" as he models 20% year-over-year GMV growth in 2022/2023, which is lower than the 20%-30% he previously predicted.
Caintic adds even following the company's share buybacks, which he "applauds," his EPS estimates are up only 3%-4% due to lower revenue yield and EBITDA margin expectations.
Keybanc analyst Bradley Thomas lowered the price target to $64 (an upside of 36%) from $70 and maintained an Overweight rating on the shares.
PROG Holdings issued a statement today that it has commenced a "modified Dutch auction" tender offer to purchase for cash up to $425 million in value of shares of its common stock.
The company launched the tender offer as part of a newly authorized $1 billion share repurchase program, which replaces the prior $300 million program.
Price Action: PRG shares are trading lower by 1.30% at $46.97 on the last check Thursday.