BTIG has updated the firm's outlook on Enova International (NYSE: NYSE:ENVA), increasing the price target to $110 from the previous $90 while maintaining a Buy rating on the stock.
The adjustment follows Enova's third-quarter earnings surpassing expectations and providing a fourth-quarter guidance that suggests stronger performance than the consensus.
Enova's stock experienced a 3% increase in after-market trading on Wednesday, following a 4% rise during regular trading hours. The company's third-quarter earnings per share (EPS) exceeded consensus estimates by 6%, and its fourth-quarter outlook is promising, with an expected EPS growth of 25% year-over-year compared to the consensus estimate of 19.5%. Additionally, Enova forecasts a 5% quarter-over-quarter revenue increase, outpacing the consensus projection of 2%.
BTIG's confidence in Enova stems from the company's proven ability to grow originations, revenue, and EPS by more than 20% year-over-year. This growth is not only anticipated for 2024 but also for the years 2025 and 2026. The firm's EPS estimates for these years are above consensus, reflecting an optimistic stance on Enova’s financial trajectory.
In other recent news, Enova's indirect subsidiary, NetCredit Receivables 2022, LLC, revised its credit agreement terms, securing a commitment amount of $200 million with Jefferies Funding LLC and Citibank. In parallel, another subsidiary, OnDeck Asset Securitization IV, LLC, plans to offer $261,353,000 in asset-backed notes.
Enova also expanded its secured asset-backed revolving credit facility from $515 million to $665 million. This move is expected to provide additional capital to support the company's operations and growth initiatives. Additionally, the company authorized a new $300 million share repurchase program, indicating confidence in its financial health.
The company's recent quarterly results showed a 27% increase in loan originations to $1.4 billion and a 26% rise in revenue to $628 million. These figures underscore Enova's strong financial performance.
Several analyst firms have updated their perspectives on Enova. Jefferies raised the company's price target to $95, maintaining a Buy rating. BTIG initiated coverage on Enova with a Buy rating and a price target of $90, while TD Cowen upgraded its price target for Enova from $70 to $76.
InvestingPro Insights
Enova International's recent performance aligns with several key metrics and insights from InvestingPro. The company's stock is trading near its 52-week high, with a remarkable 96.61% price total return over the past year. This strong performance is consistent with BTIG's bullish outlook and increased price target.
InvestingPro data shows Enova's revenue growth at 10.48% for the last twelve months as of Q2 2024, with a quarterly revenue growth of 17.9% in Q2 2024. These figures support the analyst's confidence in Enova's ability to grow originations and revenue by more than 20% year-over-year.
An InvestingPro Tip highlights that management has been aggressively buying back shares, which often signals confidence in the company's future prospects. Additionally, Enova's P/E ratio of 14.49 suggests the stock may still be reasonably valued despite its recent gains.
For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips for Enova International, providing deeper insights into the company's financial health and market position.
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