As previously reported, Janney Montgomery Scott upgraded Rent-A-Center to Buy from Neutral. Analyst John Rowan does not believe Rent-A-Center management would have elected its right to terminate the Merger Agreement with Vintage Capital Affiliates if the company's fundamentals were not improving. Rowan notes Rent-A-Center recently reported Q3 earnings of 32c, versus his estimate and the consensus of 28c, driven by consolidated same store sales improvement of 5.7% year-over-year versus 3.7% in Q2. The maintains a $15 price target on shares and notes his earnings estimate does not assume Vintage pays Rent-A-Center the $127M termination fee, which could be used to pay down debt.