Rent-A-Center cut to equal-weight as Stephens turns cautious on lease-to-own stocks

Jun. 29, 2022 11:04 AM ETRent-A-Center, Inc. (RCII)By: Preeti Singh, SA News Editor3 Comments

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  • Rent-A-Center (NASDAQ:RCII) has been downgraded to equal-weight from overweight at Stephens as the brokerage turns cautious on lease-to-own stocks amid recession concerns as the Fed boosts rates to fight inflation.
  • Stephens analyst Vincent Caintic explained that lease-to-own (LTO) companies face deteriorating consumer credit. "We think 2Q22 y/y comps will still be tough across the LTO names, since 2Q21 still benefited from retail strength, with stimulus tailwinds still affecting results."
  • Shares of Rent-A-Center (RCII) has dropped over 6% today to $20.26 and 62% over the past year. SA Quant system rates the stock at hold, while SA Authors have a buy rating on the firm.
  • A look at how the rent-to-own company performed in its latest quarter

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