OneMain Holdings (OMF – Research Report), the Financial sector company, was revisited by a Wall Street analyst today. Analyst Moshe Orenbuch from TD Cowen maintained a Buy rating on the stock and has a $54.00 price target.
Moshe Orenbuch has given his Buy rating due to a combination of factors related to OneMain Holdings’ financial performance and strategic positioning. Orenbuch’s analysis indicates that while there have been losses in previous quarters, they are tracking slightly below his estimates for the first quarter, suggesting better-than-expected performance. He also anticipates that the company will reach a peak loss rate in the first quarter of 2024, which should still allow the company to remain profitable even in a stressed credit scenario.
Orenbuch’s optimism is further bolstered by OneMain Holdings’ significant potential for capital return and several growth initiatives, all while the stock trades at a low multiple with an attractive dividend yield. The performance of the company’s personal loans and direct auto loans appears to be in line with historical seasonality, and the front book loans originated after August 2022 are showing resilience, matching the performance of pre-pandemic vintages. These insights contribute to Orenbuch’s positive outlook and his recommendation to buy the stock.
In another report released on February 9, Compass Point also assigned a Buy rating to the stock with a $54.00 price target.
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OneMain Holdings (OMF) Company Description:
OneMain Holdings, Inc. is a consumer finance company, which provides origination, underwriting and servicing of personal loans, primarily to non-prime customers. It operates through the following the Consumer and Insurance, and Other segments. The Consumer and Insurance segment comprises of service secured and unsecured personal loans, voluntary credit and non-credit insurance, and related products through its combined branch network, digital platform, and centralized operations. The Other segment consists of the liquidation of SpringCastle Portfolio activities and non-orginating operations. The company was founded on August 5, 2013 and is headquartered in Evansville, IN.
Read More on OMF:
- OneMain appoints Jenny Osterhout as CFO and Micah Conrad as COO
- OneMain price target lowered to $54 from $55 at Compass Point
- OneMain price target lowered to $62 from $68 at Deutsche Bank
- OneMain price target lowered to $54 from $57 at TD Cowen
- OneMain price target lowered to $57 from $61 at Stephens
