Can Conn's Stock Keep Going After Last Week's 23% Pop?
One of last week's biggest winners was Conn's (NASDAQ: CONN), whose shares moved 23.46% higher following a welcome analyst upgrade. Brian Nagel at Oppenheimer upgraded the retailer of furniture, mattresses, and consumer electronics on Friday, two weeks after Conn's attended a group luncheon hosted by Oppenheimer.
Nagel feels that Conn's credit business -- a bone of contention at the retailer when delinquencies spike, since the chain helps buyers finance big-ticket items that they can't afford right away -- is on solid footing these days. He feels the market's underestimating Conn's ability to thrive in this climate. He is raising his rating on the shares from perform to outperform. His $40 price target suggests that there's still 42% of upside in the next 12-18 months.
Image source: Conn's.
Source: Fool.com
