- FirstCash shares have been strong recently, as first quarter results were better than expected and there is evidence of bottoming pawn loan demand in the U.S. and Mexico.
- Operational "turbulence" is still likely for a few more quarters as the company needs to rebuild its pawn loan balances and rebuild its retail merchandise inventories.
- With the business stabilizing after the pandemic, investor attention will likely move back to the long-term growth potential, including ongoing store growth in Mexico and expansion elsewhere in Latin America.
- Mid-single-digit revenue growth and mid-to-high single-digit FCF growth can support a double-digit long-term annualized return and a near-term target close to $90.
For further details see:
FirstCash Likely Past The Worst, And The Long-Term Growth Potential Comes Back Into Focus