UPDATE: Sterne Agee Upgrades First Cash Financial Services to Buy; Past Concerns No Longer Apply

Sterne Agee raised its rating on First Cash Financial Services

from Neutral to Buy and increased its price target from $40 to $50. Sterne Agee noted, "Through acquisitions and new store openings, the company has increased its store count by 19% during the first nine months of this year to 810 (66% in Mexico/34% US) and laid the groundwork for a successful 2013. The company has reversed the decline in pawn loan balances in its Mexican border stores (+15% in 3Q12) and lessened its dependence on scrapping (down to 10% of net revenue in 3Q12). Integrating/fine-tuning acquired stores (44 in the US, 29 in Mexico) and harvesting the growth of new stores (66) opened during 2012 should result in 2013 being a year of 18%+ EPS growth." First Cash Financial Services closed at $41.82 on Wednesday.