CompuCredit Corp.'s stock slipped Wednesday after a Jefferies & Co. analyst downgraded the lender, saying more of its borrowers are failing to repay their debts.
Analyst Richard Shane Jr. downgraded the Atlanta-based company to "Hold" from "Buy."
CompuCredit's focus on borrowers with bad credit has "exacerbated a damaging combination of deteriorating credit and funding difficulties," Shane said.
CompuCredit issues credit card and car loans to borrowers with spotty credit histories. As the company expects more of these borrowers to miss payments on their bills, Shane said he expects credit concerns to weigh on the stock.
He cut his price target to $10 from $13.
CompuCredit's shares lost 70 cents, or 7 percent, to $9.25 Wednesday. The stock has traded in a range of $7.02 and $38.57 in the past year.
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