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updated 23:25, Tue September 11, 2007

Dollar Financial Shares Rise in Early Trading Following Strong Fiscal Fourth-Quarter Report

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NEW YORK (AP) -- Analysts on Wednesday said Dollar Financial Corp.'s product and regional diversity will make strong contributions to the company's financial performance this year, after the payday lender issued a strong fiscal fourth-quarter report.

Shares climbed $1.78, or 7.4 percent, to $25.85 in morning trading.

Late Monday, the company beat analyst estimates for fiscal fourth-quarter earnings and sales.

In a note to clients, Jefferies & Co. analyst Daniel T. Fannon noted the company generated strong international revenue growth in the quarter.

"We believe Dollar Financial's geographic and product diversification position them favorably among peers to achieve above average earnings growth over the next 12 months," wrote Fannon, who has a "Buy" rating and $34 target price on shares.

Roth Capital Partners LLC analyst Richard A. Eckert raised his target price to $36 from $35 and reiterated a "Buy" rating on the stock.

That implies shares could rise up to 50 percent, the analyst noted, saying the strength of the company's core business is underappreciated. That, along with the company's diversity, make it a good buy, wrote Eckert.

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