Aaron's Outlook Improves As Rent-A-Center Woes Persist


Crypto Whales Are Loading Up — Are You?

New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.


With its Progressive financial segment poised for growth, specialty retailer Aaron’s, Inc. (NYSE:AAN) was upgraded Wednesday by Loop Capital. Competitor Rent-A-Center (NASDAQ:RCII) rejected a $693 million buyout offer on Wednesday.

The Analyst

Loop Capital's Anthony Chukumba.

The Rating:

Chukumba upgraded Aaron’s from Hold to Buy rating, but kept his price target at $42 on the lease-to-own retailer. (See Chukumba's track record here.)

The Thesis

Aaron’s recent acquisitions of Progressive Financial and SEI are proving to be accretive transactions for the company, according to Loop Capital. 

“We continue to be impressed by Progressive’s revenue growth, and think Progressive will benefit from Rent-A-Center’s ongoing travails. We also believe the recent SEI acquisition will drive improved results in the Aaron’s Business division,” Chukumba said. 

While shares have been on a recent downtrend following a third-quarter earnings miss in October, the miss was not as bad as it looked, Chukumba said, noting that Aaron's does not provide quarterly guidance. "We thinks sell-side expectations were simply too optimistic," he said. 

Price action

Shares of Aaron’s were trading up more than 4 percent following the upgrade; shares were trading at $35.99.

Related Links: 

3 Factors Stacking Up Against Rent-A-Center

Retail Stocks With The Highest Short Interest

Photo courtesy of Rent-A-Center.


Crypto Whales Are Loading Up — Are You?

New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.


ENTER TO WIN $500 IN STOCK OR CRYPTO

Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!

Posted In: NewsUpgradesPrice TargetAnalyst RatingsAnthony ChukumbaLoop Capital