Market Overview

Aaron's Downgraded On Valuation

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Aaron's, Inc. (NYSE: AAN) is an omnichannel provider of lease-purchase solutions and it operates through five business segments.

The Analyst

Loop Capital Markets' Anthony Chukumba analyst downgraded Aaron's from Buy to Hold and maintained the price target of $42.

The Thesis

Chukumba sees valuation as a main reason for the downgrade. The stock is trading close to his price target of $42, which is based on 14.7 times multiple of 2018 diluted earnings per share. The analyst has a bullish view on the company's business segment Progressive and he expects the tax reform to have a positive effect on the company.

Chukumba expects Aaron's core business to benefit from acquired former franchise SEI/Aaron's Inc.. He added that the stock has been experiencing volatility lately so he wants to wait for a better entry point.

Price Action

The stock is trading about 1 percent lower at $41.66. It's gained around 3.5 percent year to date.

Latest Ratings for AAN

DateFirmActionFromTo
Oct 2019MaintainsStrong Buy
Sep 2019Initiates Coverage OnBuy
Jul 2019MaintainsOverweight

View More Analyst Ratings for AAN
View the Latest Analyst Ratings

Posted-In: Anthony Chukumba Loop Capital MarketsAnalyst Color Downgrades Price Target Analyst Ratings

 

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