Market Overview

Aaron's Outlook Improves As Rent-A-Center Woes Persist

Aaron's Outlook Improves As Rent-A-Center Woes Persist

With its Progressive financial segment poised for growth, specialty retailer Aaron’s, Inc. (NYSE: AAN) was upgraded Wednesday by Loop Capital. Competitor Rent-A-Center (NASDAQ: RCII) rejected a $693 million buyout offer on Wednesday.

The Analyst

Loop Capital's Anthony Chukumba.

The Rating:

Chukumba upgraded Aaron’s from Hold to Buy rating, but kept his price target at $42 on the lease-to-own retailer. (See Chukumba's track record here.)

The Thesis

Aaron’s recent acquisitions of Progressive Financial and SEI are proving to be accretive transactions for the company, according to Loop Capital. 

“We continue to be impressed by Progressive’s revenue growth, and think Progressive will benefit from Rent-A-Center’s ongoing travails. We also believe the recent SEI acquisition will drive improved results in the Aaron’s Business division,” Chukumba said. 

While shares have been on a recent downtrend following a third-quarter earnings miss in October, the miss was not as bad as it looked, Chukumba said, noting that Aaron's does not provide quarterly guidance. "We thinks sell-side expectations were simply too optimistic," he said. 

Price action

Shares of Aaron’s were trading up more than 4 percent following the upgrade; shares were trading at $35.99.

Related Links: 

3 Factors Stacking Up Against Rent-A-Center

Retail Stocks With The Highest Short Interest

Photo courtesy of Rent-A-Center.

Latest Ratings for AAN

Sep 2019Initiates Coverage OnBuy
Jul 2019MaintainsOverweight
Sep 2018MaintainsBuyBuy

View More Analyst Ratings for AAN
View the Latest Analyst Ratings

Posted-In: Anthony Chukumba Loop CapitalNews Upgrades Price Target Analyst Ratings Best of Benzinga


Related Articles (RCII + AAN)

View Comments and Join the Discussion!

Latest Ratings

PINCCanaccord GenuityUpgrades36.0
PDBairdInitiates Coverage On31.0
TPHRBC CapitalUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
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.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
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

10 Stocks Moving In Wednesday's After-Hours Session

Exclusive: Adidas President Mark King Discusses Being At The Intersection Of Performance And Fashion