Credit Acceptance (CACC) stock is soaring 6.18% in Friday's pre-market trading session, despite recent target price cuts from analysts. The surge comes on the heels of the company's impressive third-quarter earnings report, which exceeded market expectations.

Late Thursday, Credit Acceptance reported adjusted earnings of $10.28 per diluted share for the third quarter, up from $9.25 a year earlier and surpassing the FactSet analyst consensus of $9.87. The company's revenue for the quarter ended September 30 also showed growth, reaching $582.4 million compared to $550.3 million in the same period last year. However, this fell short of the $593.8 million expected by analysts surveyed by FactSet.

Despite the positive earnings surprise, Credit Acceptance faces some headwinds as evidenced by recent analyst actions. TD Cowen cut its target price for CACC to $430 from $450, while Jefferies lowered its target to $455 from $500. These adjustments suggest some caution in the market regarding the company's future performance. Nevertheless, investors appear to be focusing on the strong quarterly results, driving the stock's significant pre-market rally.