Zacks Investment Research downgraded shares of DFC Global Corp. (DLLR) from NEUTRAL to UNDERPERFORM on April 05, 2013, with a target price of $12.00.
We are downgrading DFC Global to Underperform from Neutral following the announcement of lowered fiscal 2013 expectation. Its third quarter earnings is also expected to be substantially lower from the year ago level. Cash checking revenue maintained the downward trend with operating expenses continued to escalate. Nevertheless, DFC Global is diversifying across products and geographies. It completed several acquisitions consistent with its objective to expand and diversify from its core retail financial services business in Canada, UK and the U.S. It strives to be one of the leading providers of financial services to the ALICE and ARTI demography and expects to purchase more pawn lending store chains in the UK and continental Europe. It also intends to work on de novo stores and widen its exposure to secured jewelry lending in select North American locations. DFC Global delivered solid fiscal second-quarter earnings on the back of a solid top line.
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