PRA (US:PRAA) ZACKS·2025-11-26 15:56Core Viewpoint - PRA Group (PRAA) has shown a 9% gain over the past four weeks, with a mean price target of $22.67 indicating a potential upside of 42% from the current price of $15.97 [1] Price Targets and Analyst Estimates - The mean estimate consists of three short-term price targets with a standard deviation of $4.16, where the lowest estimate is $18.00 (12.7% increase) and the highest is $26.00 (62.8% increase) [2] - A low standard deviation among price targets suggests a strong agreement among analysts regarding the stock's price movement [9] Earnings Estimates and Analyst Sentiment - Analysts have shown strong agreement in revising earnings per share (EPS) estimates higher, which correlates with potential stock price increases [11] - The Zacks Consensus Estimate for the current year has increased by 10.3% over the past month, with two estimates going higher and no negative revisions [12] - PRAA holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Caution on Price Targets - Solely relying on consensus price targets for investment decisions may not be wise, as analysts' price targets can often be overly optimistic due to business incentives [3][8] - While price targets should not be ignored, they should be approached with skepticism, as they may not accurately predict stock price movements [10]