RCII - Rent-A-Center gains 4% after KeyBanc calls shares inexpensive

KeyBanc Capital Markets upgrades Rent-A-Center (RCII) to an Overweight rating from Sector Weight in a call that keys in on the Acima acquisition and strong writeoff trends."We are encouraged by the recently announced Acima acquisition, which should position RCII for accelerating growth and profitability in the more attractive direct/digital segment of the business. Furthermore, government stimulus and an influx of higher quality customers have supported strong customer payment activity in recent months, which should continue into 2021. Valuation appears inexpensive given that the faster growing digital business is expected make up the majority of RCII revenues by 2H21."KeyBanc assigns a price target of $58 to RCII to rep 34% upside potential. We initiate a $58 price target, representing 34% upside KeyBanc notes that RCII trades at ~7.2x EV/EBITDA and 9.2x P/E, which it calls attractive valuation given the new growth prospects. Shares of Rent-A-Center are up 41.55% over the last

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Rent-A-Center gains 4% after KeyBanc calls shares inexpensive