World Acceptance’s credit quality to improve in the coming quarter

Sterne Agee today gave a Buy rating and also increased their price target for World Acceptance Corp. (NASDAQ: WRLD) from $30 to $37.

Sterne Agee expects that World Acceptance’s credit quality will improve in the upcoming December quarter since WRLD has reported a decline in its net charge –off ratio in the June quarter from the same quarter last year and its quarterly results are also beating consensus estimates by wider margin.

Shares of World Acceptance are currently trading at $29.63, increased by 1.47% in the morning trading hours. So far in 2009, WRLD gained over 50%. The 52 week trading range for WRLD is $10.31 - $30.87.

At yesterday’s closing price, World Acceptance shows a premium of around 25% on Sterne’s price target of $37.