JMP Securities Downgrades PT to $87 from $89, Maintains Market Outperform Rating

JMP Securities Downgrades PT to $87 from $89, Maintains Market Outperform Rating

In a recent update, JMP Securities has revised its price target for PRA Group, Inc. (NASDAQ: PRAA) to $87.00, a decrease from its previous target of $89.00, while maintaining a "Market Outperform" rating [1]. This adjustment follows the company's latest earnings report, which showed GAAP earnings per share of $1.08, significantly above analyst expectations of $0.41 to $0.44.

However, approximately $0.75 of the reported EPS came from a one-time gain related to the sale of the company’s Brazilian servicing business. Normalized earnings of $0.33 per share fell below JMP’s forecast, primarily due to a modest write-down of less than 1% to expected future collections from the 2023 vintage. JMP highlighted continued strength in European collections and deployments, which benefited partly from weakened competitors in the region. The firm also pointed to ongoing operational improvements in the U.S. market, led by offshoring initiatives and legal collections efforts.

Investors are closely watching PRA Group's financial performance. In the second quarter of 2025, the company reported earnings per share of $1.08, exceeding analysts' expectations. However, revenue fell slightly short of expectations, coming in at $287.69 million against the anticipated $291.99 million, representing a 1.47% miss in revenue projections. Despite this, the earnings surprise, with a 63.64% increase over expectations, is a notable highlight for PRA Group Inc. Analysts and investors are keenly observing these figures to gauge the company’s future prospects.

Institutional investors have shown interest in PRA Group. GSA Capital Partners LLP purchased 52,449 shares of the company’s stock during the first quarter, valued at approximately $1,081,000. Other institutional investors, including Mariner LLC, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd., State of Wyoming, and Hsbc Holdings PLC, have also increased their stakes in the company [2]. Additionally, Director Brett Lee Paschke acquired 5,000 shares of the firm’s stock, further indicating confidence in the company's future.

PRA Group has faced challenges in meeting revenue forecasts but continues to show strong earnings performance. The recent earnings report underscores the company’s ability to outperform on earnings while facing challenges in meeting revenue projections. As these results unfold, they provide valuable insights for stakeholders monitoring PRA Group Inc.’s financial health.

References:
[1] https://ca.investing.com/news/analyst-ratings/portfolio-recovery-associates-stock-price-target-raised-to-24-by-jmp-93CH-4136049
[2] https://www.defenseworld.net/2025/08/01/gsa-capital-partners-llp-buys-shares-of-52449-pra-group-inc-nasdaqpraa.html