
Aaron's (AAN) Stock Forecast & Price Target
Aaron's (AAN) Analyst Ratings
Bulls say
The Aarons Co Inc is poised for positive growth due to the anticipated sequential expansion of its lease portfolio, driven by recent upgrades to its e-commerce platform that are enhancing customer acquisition and demand. Notably, recurring revenue from the e-commerce channel has shown a significant increase of 60% year-over-year in the fourth quarter, with strong preliminary performance in the first quarter, indicating the potential for sustained growth. Furthermore, operational improvements through store consolidations, the introduction of GenNext locations, and a tech-centered decision-making process for credit approvals have bolstered the company's competitive standing, as evidenced by GenNext stores generating over 30% of lease and retail revenues despite only comprising 25% of operated locations.
Bears say
Aaron's Company Inc. faces significant challenges due to persistent macroeconomic headwinds impacting its core lower-income customer base, as evidenced by a 7% year-over-year decline in its lease portfolio and a dramatic 14% drop in BrandsMart's comparable sales. The company's earnings outlook for 2024 has been sharply revised downward, with EPS estimates adjusted from $1.20 to $0.10, reflecting a particularly tough environment for its lease-to-own model amid soft demand for consumer electronics. Additionally, ongoing inflationary pressures disproportionately affect its target demographic, which risks further erosion of consumer spending, compounded by potential regulatory scrutiny on the lease-to-own sector.
This aggregate rating is based on analysts' research of Aaron's and is not a guaranteed prediction by Public.com or investment advice.
Aaron's (AAN) Analyst Forecast & Price Prediction
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