- The explosion in bank credit originated by the pandemic will result in a better market for bad debt in upcoming years.
- Encore Capital will benefit from better deals, higher revenues, and higher ROE thanks to the rise of non-performing loans outstanding.
- The market seems reluctant to view their recent results as positive, making the stock cheap compared to other alternatives.
- ECPG has strong competitive advantages thanks to its position as a market leader and its advanced know-how in the sector.
- There is a potential upside of more than 120% from current price over the next 2-3 years.
For further details see:
A Blind Market Can't Recognize Success: The Case Of Encore Capital Group