Analyst Expectations For Encore Capital Gr's Future

In the latest quarter, 4 analysts provided ratings for Encore Capital Gr ECPG, showcasing a mix of bullish and bearish perspectives.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Encore Capital Gr, presenting an average target of $62.25, a high estimate of $66.00, and a low estimate of $58.00. This current average has increased by 6.87% from the previous average price target of $58.25.

Analyzing Analyst Ratings: A Detailed Breakdown

The perception of Encore Capital Gr by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Encore Capital Gr. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Encore Capital Gr compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Encore Capital Gr's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Encore Capital Gr's market position. Stay informed and make well-informed decisions with our Ratings Table.

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Discovering Encore Capital Gr: A Closer Look

Encore Capital Group Inc is an international specialty finance company. It provides debt recovery solutions for consumers and property owners across a broad range of financial assets. The company purchase portfolios of defaulted consumer receivables at deep discounts to face value and manages them by working with individuals as the consumer repay their obligations and work toward financial recovery. Encore has only a reportable segment being portfolio purchasing and recovery.

Financial Milestones: Encore Capital Gr's Journey

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Encore Capital Gr's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 18.56% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Financials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Encore Capital Gr's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 8.35%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Encore Capital Gr's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 3.01%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Encore Capital Gr's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.62%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: With a high debt-to-equity ratio of 3.39, Encore Capital Gr faces challenges in effectively managing its debt levels, indicating potential financial strain.

The Basics of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.