Dollar Financial’s (DLLR) third-quarter 2011 earnings came modestly ahead of the Zacks Consensus Estimate, benefiting primarily from a solid performance at core business units as well as successful implementation of a business diversification strategy.
A solid liquidity position, exposure to a somewhat recession-proof sector and cost containment measures are expected to drive growth in future. 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.
Our six-month target price of $27.00 per share equates to about 13.2x our earnings estimate for fiscal 2011. With no dividend to supplement, the expected total return equates to 20.5% over that period.
DOLLAR FINL CP (DLLR): Free Stock Analysis Report
Zacks Investment Research
