UPDATE: Nomura Equity Research Downgrades EZCORP to Neutral, Reiterates $21 PT

In a report published Friday, Nomura Equity Research downgraded its rating on EZCORP EZPW to Neutral, and reiterated its $21.00 price target. Nomura Equity noted, “Downgrade to Neutral on Valuation: Shares have increased 15% since their most recent lows on November 14 following the company‟s disappointing 4Q12 earnings conference call. With shares currently trading within ~8% of our $21 PT (based on a 7.8x blended multiple), we now see the risk/reward to owning EZPW as more in balance and believe a Neutral rating is more appropriate. Management‟s turnaround strategy involves growing out of its gold scrapping challenges by doubling down in new store builds (both in the U.S. and Mexico) and in online consumer lending. EZPW management‟s U.S. growth is beginning to suffer from an aging store base. EZPW is overweight in Texas.” EZCORP closed on Thursday at $19.35.