Enova International: Oversold, Upgrading To Buy

Enova International is upgraded to Buy after a 25% share price drop following the withdrawal of its Grasshopper acquisition applications. ENVA’s forward P/E has compressed to just over 10x FY26 EPS, supported by 30–35% EPS growth guidance and a differentiated business loan focus. The company reaffirmed guidance excluding Grasshopper and accelerated buybacks, with $349mn (about 8% of market cap) authorized through June 2027. Key risks include limited experience in small business lending (now 69% of receivables), 7.3% charge-offs, and potential regulatory pressure on the core business. A bit more than a month ago I initiated Enova International ( ENVA ) with a Hold rating, shares were then trading at around $252. I argued it was a great business but trading at 15x