** Shares of fintech firm PROG Holdings PRG.N fall as much as 4.1%; last down 3.4% at $28.18

** Jefferies downgrades PRG to "hold" from "buy", as it awaits catalysts from a more favorable environment

** Brokerage says growing evidence of a delayed industry recovery along with PRG's exposure to challenged retail segments and mixed credit trends dampens its recovery thesis

** Says it was anticipating some signals that lower-income Americans would accelerate discretionary spending after over two years of constrained activity, but it is yet to see it manifest at this point

** Jefferies cuts PRG PT to $29 from $58, a 0.6% downside to stock's last close

** Last week, PRG forecast annual adjusted EPS and revenue below Wall Street expectations amid higher delinquencies and growth headwinds

** Five of seven brokerages rate the stock "buy" or higher and two "hold"; their median PT is $44, according to data compiled by LSEG

** As of last close, PRG stock down 31% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))