Oppenheimer Reiterates Outperform Rating, $85 PT on Conn's on Buying Opportunity

In a report published Tuesday, Oppenheimer analyst Brian Nagel reiterated an Outperform rating and $85.00 price target on Conn's CONN. In the report, Oppenheimer noted, “Several days ago CONN reported Q2 (July) results and indicated that a systems glitch spurred a delinquency spike within its credit division. Since then CONN is down 25% vs. gains of 3% and 2% in the S&P 500 and our Opco Hardlines coverage. CONN represents one of the most attractive small-cap growth stories in Hardlines, in our view. We have spent a lot of time ‘slicing and dicing' various credit metrics at CONN and discussing trends with management. Retail stock investors do not quickly forget credit issues. We are convinced that recent credit dislocations at CONN reflect one-time issues and the mechanics of a rapidly growing portfolio. We reiterate our Outperform rating and view the pullback in shares as a buying opportunity.” Conn's closed on Monday at $51.00.