Ezcorp Inc (NASDAQ:EZPW) is one of the best micro and small cap stocks to buy according to Jim Simons’ Renaissance Technologies. Ezcorp shares have gained more than 65% so far this year and are up almost 150% over the past year. Analysts see more upside to these pawn shop stocks.
On May 20, Canaccord Genuity reaffirmed its Buy rating on Ezcorp shares with a $44 price target on the stock. The company based its decision on insights it said showed strong investor interest in pawn shop stocks.
Canaccord Genuity recently hosted investor meetings with Ezcorp CEO Lachie Given in Boston. From these meetings, the firm noted a long-term quality tilt in Ezcorp’s investor list in the more than 40 months it has been covering the stock. This is evidenced in part by the company’s raising of capital on favorable terms. As an example, last year Ezcorp issued $300 million in senior notes due 2032 in a private offering with no covenants attached.
Canaccord Genuity also highlighted how Ezcorp has delivered record results since initiating coverage of the stock in January 2023. Additionally, analyst Brian McNamara said Ezcorp is trading at an EV/EBITDA discount of approximately 47% to rival FirstCash Inc.
Texas-based Ezcorp Inc (NASDAQ:EZPW) is a pawn shop operator with a presence in the United States and Latin America. In addition to offering pawn loans, the company also sells merchandise. These are usually used items purchased from customers or collateral confiscated from your pawn loan operation.
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