Encore Capital Receives a Buy from Oppenheimer

By Carrie Williams

Oppenheimer analyst Ben Chittenden maintained a Buy rating on Encore Capital (NASDAQ: ECPG) yesterday and set a price target of $55. The company’s shares closed yesterday at $43.40.

Chittenden observed:

“Late last week, we and senior management of Group (ECPG) met with clients in San Francisco. We walked away even more convinced the positive industry tailwinds coupled with ECPG’s collections improvement initiatives have set up the company well for improving profitability going forward. Key takeaways: 1) liquidation improvements not only helped offset some of the poorer portfolio pricing years they’ve incrementally improved the older vintages as well; 2) pricing for new portfolio purchases is more stable today, but the new purchases are coming on at purchase multiples that are essentially in line with the existing book; 3) management was very upbeat about the 4) ECPG is very comfortable with its current capacity, but will continues to add.”

According to TipRanks.com, Chittenden is a 3-star analyst with an average return of 1.5% and a 55.9% success rate. Chittenden covers the Financial sector, focusing on stocks such as Discover Financial Services, Credit Acceptance Corp, and Capital One Financial.

Encore Capital has an analyst consensus of Moderate Buy, with a price target consensus of $54.

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Encore Capital’s market cap is currently $1.12B and has a P/E ratio of 13.87. The company has a Price to Book ratio of 1.84.

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Encore Capital Group, Inc. provides debt management and recovery solutions for consumers and property owners across a broad range of financial assets. It operates through the Portfolio Purchasing and Recovery segment.