Analyst Moshe Orenbuch of TD Cowen maintained a Buy rating on OneMain Holdings (OMF – Research Report), retaining the price target of $60.00.
Moshe Orenbuch has given his Buy rating due to a combination of factors including OneMain Holdings’ (OMF) consistent performance and strategic financial management. Despite experiencing some increase in losses, these are primarily from loan vintages prior to the company’s August 2022 tightening. The post-tightening loans are performing similarly to those before the pandemic, suggesting a return to stable footing. Furthermore, early delinquency rates are better than expected, indicating a positive trend in loan repayments.
Additionally, Orenbuch is encouraged by OneMain Holdings’ resilience in potentially stressful credit situations and its capacity to remain profitable. The firm’s significant initiatives for capital return and growth prospects provide an optimistic outlook, particularly as the stock is currently trading at a low multiple with an attractive dividend yield of around 8%. These factors collectively underpin Orenbuch’s confidence in the company’s stock, justifying the Buy rating.
In another report released on May 1, JMP Securities also reiterated a Buy rating on the stock with a $62.00 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.
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