Ezcorp: Falls as Jefferies downgrades to "hold", cuts PT

EZCORP

08/10/2019 15:28

(Adds stock movement, milestone)
    ** Brokerage Jefferies downgrades pawn store operator
 EZPW.O  to "hold" form "buy" on recent appointment of Phillip
Cohen as executive chairman  urn:newsml:reuters.com:*:nL2N26A0VM
    ** Cuts PT to Street low of $6.50 from $13.50; 48% lower
than the median PT of $12.50 - Refinitiv
    ** Stock down ~10% to $5.54, hiting its lowest in nearly 3
years and 4 months; among top pct losers across U.S. exchanges
    ** "While Mr. Cohen has extensive industry experience, it is
our opinion that his history with EZPW reflects actions which
are not in the best interest of non-voting shareholders" -
Jefferies 
    ** Says Cohen's involvement over the last few years has
become more hands off and thus less of an influence
    ** Jefferies says Cohen, "the sole owner of the voting
shares of EZPW", had outside consulting relationships with
little justification or accountability, and influence on a
series of acquisitions which have had a poor record of success  
    ** Says the appointment will likely distance banks and
capital markets from investing in EZPW, limiting ability to
expand; may benefit peers who can more freely bid for
acquisitions
    ** Stock was down ~28% YTD

 (Reporting by C Nivedita in Bengaluru)
 ((C.Nivedita@thomsonreuters.com))