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Fly News Breaks for January 2, 2018
RCII
Jan 2, 2018 | 09:04 EDT
Loop Capital analyst Anthony Chukumba keeps his Sell rating and $8 price target on Rent-A-Center, saying the company remains overvalued based on its historical average levels and average valuation of other "secularly challenged" specialty hardlines retailers. Chukumba also points to recent bearish developments for the stock, including the management's decision to stop providing monthly performance metrics, the new limit on interest expense deductibility in the Tax Cuts and Jobs Act, and the Board's proposal to declassify. The analyst also contends that a near-term sale of the company is unlikely.
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