UPDATE: Canaccord Genuity Initiates Conn's at Buy on Growth Outlook

Canaccord Genuity initiated coverage on Conn's CONN with a Buy rating and a $36 price target. Canaccord Genuity commented, "We believe Conn's is in the early stages of growth with new management creating several catalysts. The company's in-house credit offering gives it a significant competitive advantage as it drives sales by financing Conn's lower income core customer and provides a sizable profit engine. In Q2, nearly 90% of total sales were financed, and Conn's generated almost half of total operating income from this segment. Management has taken steps to improve the overall credit portfolio, and it has refocused Conn's real estate strategy. The company is reaccelerating square footage growth, opening new stores for the first time in two years, and expanding floor space for the higher-margin furniture and mattress segment." Conn's closed at $22.05 on Friday.