
PRA Group (PRAA) Stock Forecast & Price Target
PRA Group (PRAA) Analyst Ratings
Bulls say
PRA Group Inc. demonstrated robust financial performance in the third quarter, with legal cash collections increasing by 27% year over year to $125 million and total cash collections rising by 14% to $542 million, exceeding projections. The company's portfolio income reached $259 million, reflecting a 20% increase from the previous year, while total revenue for the quarter was $311 million, significantly above expectations, bolstered by a positive change in expected recoveries. Additionally, PRA Group's cash collection growth in both the Americas & Australia and Europe indicates a favorable market environment and solid operational execution, positioning the company for continued financial success.
Bears say
PRA Group Inc. has experienced significant challenges, as evidenced by a 47% year-over-year decline in purchase volume within its Americas & Australia core segment, contrasting with a 33% increase in Europe. The company's overall average portfolio yield of 23% over the past five years is 15% lower than that of its competitor, ECPG, indicating persistent underperformance in revenue generation. Additionally, a decline in collections as a percentage of average receivables, coupled with a higher Cash Efficiency Ratio compared to ECPG, raises concerns about operational inefficiencies and future impairment charges, which could further negatively impact earnings per share and overall valuation.
This aggregate rating is based on analysts' research of PRA Group and is not a guaranteed prediction by Public.com or investment advice.
PRA Group (PRAA) Analyst Forecast & Price Prediction
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