Summary Highlights:
- PRA Group (PRAA, Financial) experiences a robust 19% increase in portfolio purchases, leading to a record Estimated Remaining Collections (ERC) of $7.8 billion.
- US legal cash collections jump by 33% year-over-year, reaching $111 million.
- Wall Street analysts forecast a significant upside potential with an average target price of $29.00.
PRA Group Inc. (PRAA) has reported an impressive 19% growth in its portfolio purchases, significantly boosting its Estimated Remaining Collections (ERC) to an unprecedented $7.8 billion—an escalation of 20% year-over-year. Notably, U.S. legal cash collections have also shown a remarkable 33% year-over-year increase, amassing $111 million. As part of its strategic growth plan, the company anticipates investing $920 million in global portfolios to maintain its current ERC levels.
Wall Street Analysts' Projections
According to the projections from three Wall Street analysts, PRA Group Inc. (PRAA, Financial) carries an average one-year price target of $29.00. This includes a higher estimate of $33.00 and a lower estimate of $24.00. Such projections suggest a potential upside of 51.04% from the current trading price of $19.20. Investors can explore further details about these estimates on the PRA Group Inc (PRAA) Forecast page.
The consensus from four brokerage firms reflects a current average rating of 2.5 for PRA Group, indicating an "Outperform" status. This rating system ranges from 1 (Strong Buy) to 5 (Sell), underlining a positive outlook among market analysts.
Fair Value Estimation: GF Value
GuruFocus's proprietary GF Value metric estimates the one-year fair value for PRA Group Inc. (PRAA, Financial) to be $35.21. This projection implies a potential upside of 83.39% from its present price of $19.20. The GF Value metric, grounded in historical trading multiples, historical business growth, and projected future performance, provides a comprehensive valuation assessment. Additional insights are accessible on the PRA Group Inc (PRAA) Summary page.
