Enova International Raises Price Target to $140, Buy Rating Reiterated by Maxim Group Analyst Michael Diana.

Enova International's strong financial performance and positive outlook led to a Buy rating and increased price target of $140 by analyst Michael Diana from Maxim Group. The company reported Q2 2025 results surpassing consensus estimates in revenue, adjusted EBITDA, and EPS, partly due to lower marketing costs. Diana expects robust loan growth and stable credit quality, with no signs of negative impacts from macroeconomic factors.

Enova International Inc. (ENVA) reported robust financial performance for the second quarter of 2025, exceeding analyst expectations and leading to a Buy rating and an increased price target of $140 by analyst Michael Diana from Maxim Group. The company's strong results, driven by lower marketing costs and stable credit quality, have bolstered investor confidence.

Key Financial Highlights

- Revenue Growth: Enova's total revenue reached $764 million, marking a 22% increase year-over-year and surpassing the estimated $756.68 million [3].
- Earnings Per Share (EPS): Diluted EPS of $2.86 was reported, a 48% increase year-over-year, beating the estimated $2.69 [3].
- Adjusted EBITDA: Adjusted EBITDA increased by 25% to $203 million [3].
- Loan and Finance Receivables: Totaled $4.3 billion, with originations rising 28% to $1.8 billion [3].
- Liquidity: The company maintained robust liquidity with $1.1 billion in cash and marketable securities [3].

Credit Quality and Operational Efficiency

Enova's net charge-off ratio remained stable at 8.1%, while the net revenue margin held at 58% [2]. The 30+ day delinquency ratio improved to 7.1%, indicating the continued effectiveness of Enova's underwriting algorithms [2]. The company's operational efficiency is evident in its ability to manage costs, with lower marketing expenses contributing to the strong financial performance.

Leadership Transition

Enova announced key leadership changes effective January 1, 2026. CEO David Fisher will transition to Executive Chairman, CFO Steve Cunningham will become CEO, and Scott Cornelis will assume the CFO role [2]. This planned succession plan aims to ensure continuity in Enova's growth strategy and minimize transition risks.

Outlook

Analyst Michael Diana expects robust loan growth and stable credit quality, with no signs of negative impacts from macroeconomic factors. Enova's strategic focus on expanding its loan portfolio and commitment to shareholder value through share repurchases position the company well for future success.

References

[1] https://www.theglobeandmail.com/investing/markets/stocks/ENVA/pressreleases/33660239/enova-international-reports-strong-q2-2025-results/
[2] https://www.stocktitan.net/news/ENVA/enova-reports-second-quarter-2025-jd5gcsl21m00.html
[3] https://www.gurufocus.com/news/3003361/enova-international-inc-enva-q2-2025-earnings-eps-of-286-beats-estimates-revenue-hits-764-million