Keefe Bruyette analyst Eric Hagen says the 15% pullback in shares of Encore Capital since the company reported earnings in May brings an attractive entry point. The weakness is being driven mostly from the stock's increased correlation to Arrow Global, Encore's U.K. competitor, including mounting short interest in ARW, Hagen tells investors in a research note. Further, he expects some pressure is the result of a weaker earnings outlook due to higher borrowing costs. However, the analyst we think a steady acquisition pipeline in the U.S. can largely offset this. Hagen keeps an Outperform rating on Encore with a $53 price target.