Keefe, Bruyette, & Woods Upgrades Americredit Corp. to Outperform (ACF)

Keefe, Bruyette, & Woods is out with a research report this morning, where it upgrades shares of Americredit Corp. to Outperform; it has a $23.00 price target on the stock. The Keefe, Bruyette, & Woods analysts said, “At a recent conference, AmeriCredit CEO Dan Berce provided some guidance for fiscal 4Q10 results, including favorable credit trends and higher loan originations. We are raising EPS estimates and upgrading ACF shares to Outperform from Market Perform as the shares currently offer potential upside of 26% relative to our revised price target.” They also noted, “The subprime auto finance industry should benefit as access to funding continues to improve and credit losses decline. However, increased competition, and still high unemployment may pressure earnings growth.” ACF is a leading subprime lender in the auto finance industry and offers loans primarily through relationships w/franchised auto dealers, targeting consumers having difficulty obtaining credit.