DLLR Dfc Global Corp (MM)

We are upgrading our recommendation on DFC Global Corp. (DLLR) to Outperform from Neutral, as we believe that the recent sell-off in the stock has made DFC's valuation more compelling. We think the recent pullback gives investors an opportunity to buy the shares at a more reasonable multiple.

DFC Global's return on equity of 23.6% is substantially higher than that of industry average of negative 87.9%. The company expects to release first quarter earnings on October 27. The Zacks Consensus Estimate for EPS is $0.49, which would translate into earnings growth of 36% year over year.

We expect the company to post strong results based on solid performance at its core business units, successful implementation of business diversification strategy and strategic investments. The company also has a healthy liquidity position. Going ahead, the company is also expected to grab the opportunities through acquisitions and deploy the available funds in a manner that will further enhance future earnings.
 
DFC GLOBAL CORP (DLLR): Free Stock Analysis Report
 
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