UPDATE: Canaccord Genuity Downgrades Aaron's to Hold on Valuation, Weakening Trends
Canaccord Genuity downgraded Aaron's (NYSE: AAN) from Buy to Hold and lowered the price target from $34.00 to $30.00.
Canaccord Genuity noted, "We are downgrading shares of AAN from Buy to HOLD ahead of the company's Q4 earnings release as we believe the core rent-to-own industry remains pressured. … In our view, AAN lacks a clear growth catalyst comparable to RCII's kiosks. AAN's store base is growing at an annual rate of 5% vs. the specialty retail group's average of +6%, and ancillary concepts are still in the infant stages. We believe shares are fairly valued at 13x our 2013 EPS estimate and 7x 2013E EV/EBITDA."
Aaron's closed at $29.85 on Wednesday.
Latest Ratings for AAN
|Apr 2015||Stifel Nicolaus||Maintains||Buy|
|Mar 2015||Stephens & Co.||Initiates Coverage on||Overweight|
|Feb 2015||Stifel Nicolaus||Maintains||Buy|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.