Raymond James maintains Buy rating on PROG following spinout » 08:4212/0212/02/20
Raymond James analyst…
Raymond James analyst Bobby Griffin continued coverage of PROG Holdings (PRG) with an Outperform rating, but lowered the firm's price target to $63 from $68, after Aaron's (AAN) completed the spinout of the core Aaron's business, leaving the Progressive & Vive business units. Griffin says the virtual lease to own industry is an attractive industry, with a large addressable market that creates a multiyear growth opportunity, and sees the potential for tighter consumer credit conditions.
Aaron's initiated with a Market Perform at Raymond James » 08:3412/0212/02/20
Raymond James analyst…
Raymond James analyst Bobby Griffin initiated coverage of Aaron's with a Market Perform rating after the company completed the spinout of the core Aaron's business. Griffin thinks the real estate optimization should enable further efficiency gains, coupled with consistent cash flow generation, but feels "shrink to grow" stories are tough stocks to recommend, particularly during the initial phase of revenue declines.
Aaron's downgraded to Hold from Buy at Truist » 07:1112/0212/02/20
Truist analyst Bill…
Truist analyst Bill Chappell downgraded Aaron's (AAN) to Hold from Buy with a post-split adjusted price target of $20, down from $70. The analyst notes that following the spin-off of the Progressive and Vive segments into a separate public company, his new rating and a discount in Aaron's current valuation relative to its direct peer Rent-a-Center (RCII) is warranted given the company's "uneven results" over the past few years. Chappell adds that he would like to see more consistent, non-pandemic impacted results before becoming more constructive.
BofA starts Aaron's post-spinoff at Neutral with $20 price target » 06:3612/0212/02/20
BofA analyst Jason Haas…
BofA analyst Jason Haas initiated coverage of Aaron's (AAN) with a Neutral rating and $20 price target following the spinoff from Progressive (PRG). The brick and mortar lease-to-own retailer plans to reduce its company-owned store count by 20%-30% over the next five years, which would lead to lower revenue, at least initially, but higher EBITDA, noted Haas.
Aaron's initiated with a Sector Weight at KeyBanc » 06:2312/0212/02/20
KeyBanc analyst Bradley…
KeyBanc analyst Bradley Thomas initiated coverage of Aaron's with a Sector Weight rating and no price target. The analyst is positive the company's e-commerce and its footprint optimization strategies, but believes the stock may face selling pressure following the spin transaction in the near-term.
The Aaron's Company initiated with a Neutral at BofA » 06:0612/0212/02/20
BofA initiated coverage…
BofA initiated coverage of The Aaron's Company with a Neutral rating and $20 price target.
The Aaron's Company to replace Geospace in S&P 600 at open on 12/2 » 04:5512/0212/02/20
AANWI, GEOS, AAN
The Aaron's Company…
The Aaron's Company (AANwi) will replace Geospace (GEOS) in the S&P SmallCap 600 effective prior to the opening of trading on Wednesday, December 2. Aaron's Holdings (AAN) is spinning off The Aaron's Company in a transaction expected to be completed post close on November 30. Post spin-off transaction, parent Aaron's Holdings will change its name to PROG Holdings, its ticker to "PRG," and its Global Industry Classification Standard sub industry group to Consumer Finance. The newly named PROG Holdings will remain in the S&P MidCap 400. The Aaron's Company will trade under ticker symbol "AAN" effective on December 1. Geospace Technologies is no longer representative of the small-cap market space.
Two new option listings and two option delistings on December 1st » 08:3012/0112/01/20
PRG, WRAP, AAN, WRTC
New option listings for…
New option listings for December 1st include PROG Holdings Inc (PRG) and Wrap Technologies Inc (WRAP). Option delistings effective December 1st include Aaron's (AAN) and Wrap Technologies Inc (WRTC).
Jefferies would capitalize on technical pressure on Aaron's after spinoff » 07:4112/0112/01/20
Jefferies analyst Kyle…
Jefferies analyst Kyle Joseph updated his model and valuation for the standalone Aaron's (AAN) business following the spin from Progressive (PRG), setting a Buy rating $25 price target on the standalone Aaron's Company. Given what he sees as the roughly $19 trading price implied by the "when issued" shares, he said he would capitalize on any technical pressure given his view on how Aaron's business has evolved and management's five-year plan of "shrinking to grow," Joseph tells investors.
PROG Holdings initiated with a Buy at Jefferies » 07:3612/0112/01/20
Jefferies analyst Ryan…
Jefferies analyst Ryan Carr initiated coverage of PROG Holdings (PRG) with a Buy rating and $67 price target following the company's spin from The Aaron's Company (AAN). The parent of Progressive, which he views as a "pioneer in the virtual lease-to-own world," is best positioned for growth in "a large market that remains underserved," Carr tells investors.