- Curo ( NYSE: CURO ) continued its decline on Friday, sliding over 9% , as Credit Suisse downgraded the stock to Neutral given its lower earnings outlook.
- The company's shares had fallen over 3% on Thursday after its Q4 earnings report.
- "The (earnings) miss was primarily driven by higher-than-expected provision, followed by lower revenue and higher opex," said analyst Moshe Orenbuch.
- He noted that Curo ( CURO ) is taking a cautious approach on underwriting, but there is less near-term visibility on its ability to offset lower revenue and higher interest expense with cost cuts.
- "Overall, we view the quarter as negative, given the lack of visibility into the operating environment going forward," said Orenbuch.
- Credit Suisse reduced its 2023/2024 EPS estimates for Curo ( CURO ) to -$1.20/$0.75 (prior $1.25/$1.95).
- It also cut its price target on the stock to $4 from $7, implying 8.1% potential upside to its last close.
- Credit Suisse's Neutral stance contrasts bullish sell-side ratings . But SA Quant rates the stock Sell .
- Take a look at the company's Q4 earnings report .
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Curo stock falls 9% as Credit Suisse moves to sidelines on weak earnings outlook