Skip to main content

Market Overview

Enova International A Leader, An Innovator And A Buy, Says Jefferies

Share:
Enova International A Leader, An Innovator And A Buy, Says Jefferies

Jefferies has started coverage of Enova International Inc (NYSE: ENVA) with a Buy rating and price target of $12, implying a potential upside of 25 percent over recent close.

Chicago, Illinois-based Enova is a leading provider of online financial services firm consumer loan products as well as small business loans. These products span seven distinct brands and several countries internationally, with a large addressable global market of more than $300 billion.

"We believe that Enova is an innovator and a leader in the large, fragmented market for alternative consumer lending, and that there is meaningful upside from current stock price levels," analyst John Hecht wrote in a note.

Related Link: Seacoast Banking Set For Profitability Ramp, Says KBW

Hecht noted Enova's dealing of both regulatory framework and economic situations would separate the company from other emerging lenders over time. For instance, Enova has successfully navigated a period of regulatory reform in the U.K., and now generating profits with volumes growing 33 percent year-over-year.

In the United States, the analyst said the company is uniquely positioned to navigate the likely regulatory reforms in the country —which accounts for 78 percent of revenues.

"[W]e assess that the potential impact of the proposed US regulatory framework is tolerable, even under current valuation multiples and forecasting scenarios," Hecht highlighted.

The company is currently trading at a "very attractive" 6.0x CY18 P/E, and "an appealing" 8x CY18 P/E even when accounting for regulatory reform and clarity.

Hecht projects EPS of $1.08 for 2016 and $1.35 for 2017 versus consensus estimates of $1.09 and $1.27, respectively.

At time of writing, shares of Enova rose 5.01 percent to $10.07.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for ENVA

DateFirmActionFromTo
Apr 2020JMP SecuritiesMaintainsMarket Outperform
Dec 2018JMP SecuritiesMaintainsMarket OutperformMarket Outperform
Oct 2018JMP SecuritiesMaintainsMarket OutperformMarket Outperform

View More Analyst Ratings for ENVA
View the Latest Analyst Ratings

 

Related Articles (ENVA)

View Comments and Join the Discussion!

Posted-In: JefferiesAnalyst Color Long Ideas Price Target Initiation Analyst Ratings Tech Trading Ideas Best of Benzinga

Latest Ratings

StockFirmActionPT
GDWolfe ResearchDowngrades
QRTEAB of A SecuritiesInitiates Coverage On
ABB of A SecuritiesDowngrades42.0
VCTRB of A SecuritiesUpgrades32.0
BSIGB of A SecuritiesUpgrades27.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com