UPDATE: Credit Suisse Initiates Credit Acceptance Corp. with Neutral on Multiple Positive Factors

In a report published Wednesday, Credit Suisse analyst Moshe Orenbuch initiated coverage on Credit Acceptance Corp. (NASDAQ: CACC) with a Neutral rating and $125.00 price target.

In the report, Credit Suisse noted, “We are initiating coverage of CACC with a neutral rating and a target price of $125. We are highlighting CACC's 1) role as a leading subprime auto financer since 1972 2) unique business model 3) growth opportunity in a fragmented market and 4) cash generation allowing for a conservative leverage rate. Our PT is based on a 10x multiple of our 2014 estimates which considers pressure from regulatory uncertainty and competition in the market.”

Credit Acceptance Corp. closed on Tuesday at $115.10.