Citizens Financial maintained its Market Outperform rating and reduced its price target on OppFi Inc (NYSE: OPFI) to $11 from $15 on Wednesday, citing the pending acquisition of BNCCorp (NASDAQ: BNCC) as a key upside catalyst.
The bank’s revised target reflects a 51% premium to OppFi’s closing price of $7.30 on Tuesday, despite the company’s second-quarter results falling short of expectations. Adjusted earnings per share came in at $0.33, missing the $0.46 consensus estimate by 28.3%, while revenue totaled $145.17 million, undershooting the $156.51 million forecast by 7.25%. The company reported a record second-quarter revenue, though growth slowed to 1.9% year-over-year.
OppFi’s adjusted net income declined 27% to $29 million, and loan originations fell 9% compared to the prior year. Management attributed the weaker performance to delays in launching a new credit line product and migrating to the LOLA system, which prompted a downward revision to full-year 2026 guidance.
Citizens acknowledged headwinds in OppFi’s core triple-digit APR installment lending business, where competition from earned-wage access and other high-cost credit line products is intensifying. The firm noted that these alternatives often offer smaller monthly payments, drawing borrowers away from OppFi’s higher-cost installment offerings.
The bank emphasized that the pending BNCCorp acquisition remains a primary driver of its positive outlook. The deal is expected to provide strategic benefits that could offset near-term competitive pressures. OppFi also plans to invest over $150 million in 2026 to expand its multi-product platform, including the upcoming credit line product, which aims to reduce monthly payments for borrowers and reaccelerate growth.
