UPDATE: Sterne Agee Raises PT on Several Pawn Lenders

According to a research report published earlier today, Sterne Agee has increased Cash America Internaional's CSH PT from $49 to $50, EZ Corp.'s EZPW PT from $29 to $35 and First Cash Financial Services Inc.'s FCFS PT from $36 to $43. Sterne Agee commented in the report, “While above our comfort range, the market seem to be valuing pawn shop EPS at above 15x. While we still see a number of headwinds facing the pawn/pay day lenders we follow, estimates have, since the misses and near beats surrounding the December quarter, moved modestly lower relative to November's expectations and investors have had two full quarterly reports to digest the lower pawn shop growth being realized in Mexico. The announced acquisition of Advance America (AEA) by Grupo Elektra, SAB de CV (ELEKTRA-MEX, 1,129.07 P, not rated) on February 15 at close to 9x consensus 2012 EPS is worth noting.” Sterne Agee maintains the following: Cash America: Buy rating, closed yesterday at $47.52. EZ Corp.: Neutral rating, closed yesterday at $31.57. First Cash: Neutral rating, closed yesterday at $45.91.