- Loop Capital Markets analyst Anthony Chukumba downgraded PROG Holdings, Inc. (NYSE:PRG) to Hold from a Buy Rating, with a price target of $34.
- The analyst remains worried about near-term gross merchandise volume (GMV) (which dropped 17.0% YoY in 1Q 2023).
- The analyst cautions about the dramatic pandemic-driven demand pull-forwards in furniture, appliances, and consumer electronics—three of PROG Holdings’ largest product categories.
- The analyst also flags that he has not seen any tangible signs of consumers “trading down” to lease-to-own, or LTO (which would benefit PROG Holdings) due to subprime credit drying up, as usually occurs when the U.S. macroeconomic backdrop becomes more challenging.
- PROG will also likely face macroeconomic pressures on the company’s core low-income customer base, which could result in lower revenues and increased merchandise write-offs.
- The analyst believes that GMV trends must improve materially for investors to revalue the stock.
- Price Action: PRG shares are trading lower by 3.60% to $32.93 on the last check Monday.
WeWork Expected To File For Bankruptcy Next Week: Could The Stock See One More Pop?
WeWork Inc (NYSE: WE), the co-office space start-up that was once valued at nearly $50 billion (more than the market cap of Ford), will reportedly file for bankruptcy next week.
