UPDATE: Jefferies Raises PT on Conn's on Lower FICO Level

In a report published Friday, Jefferies analyst Daniel Binder reiterated a Hold rating on Conn's

, and raised the price target from $27.00 to $40.00. In the report, Binder noted, “Over the last year, higher ASPs and credit extension to fewer accounts took average balances up and comp store sales too. Now as the company laps that, it is expecting average balances to stabilize, so it will have to go to a lower FICO level to grow credit accounts and comp stores sales. In a recovering economy the risks with this strategy may be lower, but could be more problematic if the consumer reverses course.” Conn's closed on Thursday at $44.11.