LOS ANGELES, CA / ACCESSWIRE / September 20, 2024 / Singular Research initiates coverage on Oportun Financial Corp (NASDAQ:OPRT), a leading financial services company focused on providing credit to underserved thin-file or no-file borrowers with a Buy rating and a target price of $5.50. This target reflects a capital appreciation potential of 90% (as of the closing price on 9/19/24), driven by the Company's unique ability to effectively evaluate creditworthiness and manage risk among individuals with limited or no credit history.

Oportun addresses the large potential market of low-to-moderate-income (LMI) individuals in the United States, who are often overlooked by traditional financial institutions. By leveraging advanced data analytics, the Company is able to cater to this demographic, which represents a significant growth opportunity. Oportun's product offerings include unsecured personal loans, secured personal loans, and its Set & Save savings product, tailored to the needs of LMI individuals who may not typically have access to conventional financial services.

The Company has seen strong performance in its front book of loans originated after July of 2022 and expects to return to typical seasonal loan growth patterns after a period of declining loan volume. With an attractive unit economic model targeting a long-term return on equity (ROE) between 20% and 28%, Oportun is well-positioned to drive sustainable growth and create shareholder value as its back book shrinks while cost discipline is maintained and operating leverage improves. The Buy rating and $5.50 price target reflect Singular's confidence in the Company's ability to capture market share and deliver on its financial goals.

To access Singular Research's full initiation report on Oportun, please follow the link here.

For more information on Oportun Financial, please visit investor.oportun.com.

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SOURCE: Singular Research