Canaccord Genuity raised its price objective on EZCORP to $34.00 from $28.00 and kept a Buy recommendation following the company's most recent quarterly results.
The new target sits toward the upper end of the analyst range, which spans $26 to $35 across the brokerage universe. Shares have appreciated considerably over the past year, trading about 85.6% higher year over year, and are currently a little below what analysts consider Fair Value.
Canaccord characterized the quarter as "another record quarter," citing a 19% increase in sales. That top-line expansion was roughly 6 percentage points higher than both Canaccord's internal forecast and the consensus estimate, according to the reporting accompanying the analyst note.
Management commentary and line-item results pointed to pawn loans outstanding as the central growth engine for the business. Pawn loans grew by 14% during the period, which fed a 13% rise in pawn service charges. Merchandise sales also expanded by 13% year over year, while merchandise margin edged up sequentially to 36.8% from 35.4% in the prior quarter, keeping margins inside the company's targeted 35% to 38% band.
Those operational trends supported adjusted EBITDA and earnings per share that outperformed consensus expectations. The company is being valued at a P/E of 14 and shows a low PEG ratio of 0.29, metrics that market participants interpret as indicating potential undervaluation relative to growth. Financial health metrics included in the reporting rated the company as having a "GREAT" overall financial health score.
During the quarter EZCORP continued to broaden its physical footprint, adding 23 net new stores. The expansion comprised 17 acquired locations, seven new greenfield openings and the consolidation of one site. The company also secured a controlling interest in Founders One, LLC, a deal that expanded its presence into regions including Florida and Puerto Rico.
The Founders One transaction was effected by converting existing preferred equity and notes receivable into common equity, together with a $9.4 million cash contribution. That strategic move was highlighted alongside the retail and pawn performance as a driver of the company's growth trajectory.
Canaccord's target increase follows other broker reactions to EZCORP's recent operating momentum. One firm reiterated a Market Outperform stance and moved its target higher, while Canaccord itself had previously adjusted its target in line with the company's solid results, maintaining a constructive view of the shares.
Other quarterly metrics cited in company reporting included fourth-quarter results for fiscal 2025 and a fiscal first-quarter update. For the fourth quarter of 2025 the company reported earnings per share of $0.34 on revenue of $336.8 million, both figures topping expectations of $0.29 and $324.38 million respectively. In the fiscal first quarter the company reported adjusted EBITDA of $70 million, ahead of estimates that clustered in the mid-$50 million range; commentary attributed part of that outperformance to elevated gold prices during the period.
Company management and analysts noted that consumer behavior remains an important near-term variable. Elevated household expenses continue to influence demand patterns: lower-income consumers are reported to be seeking quick access to cash, while higher-income consumers are increasingly trading down to less expensive goods. These dynamics have implications for both pawn-loan activity and merchandise sales.
Key takeaways
- Canaccord raised its EZCORP price target to $34 and maintained a Buy rating after a quarter with 19% sales growth and results above consensus.
- Core growth drivers included a 14% increase in pawn loans outstanding and a 13% rise in both pawn service charges and merchandise sales; merchandise margin improved to 36.8%.
- EZCORP expanded by 23 net stores and acquired a controlling interest in Founders One, LLC, extending its footprint into new markets.
Risks and uncertainties
- Consumer spending pressure: Continued elevated household expenses could alter demand patterns across pawn and merchandise categories, affecting the company's core retail and consumer-finance segments.
- Concentration on pawn-loan growth: The business's performance is closely tied to pawn loans outstanding; a slowdown in that growth driver would have direct consequences for revenue and service-charge trends, with implications for consumer finance and retail exposure.
- Commodity-price sensitivity: Movements in gold prices have contributed to adjusted EBITDA outcomes; volatility in gold markets introduces earnings variability that impacts the company's financial results.
Contextual note - The company reported multiple beats in recent results and has been the subject of updated price targets and reiterated positive analyst stances following the strong quarter and strategic acquisition activity.