In a report published on Tuesday, Bank of America analyst Kenneth Bruce initiated a Neutral rating on PennyMac Financial Services PFSI and announced a $23.00 price objective for the company.
In the report, Bank of America commented that, "We are initiating coverage on PFSI with a Neutral rating and $23 Price Objective. We believe PFSI is well positioned to capitalize on growth opportunities in the U.S. mortgage market via its activities in lending and servicing, which should generate attractive EPS growth potential over the next few years. Our longer-term earnings outlook implies 20% 5-yr EPS CAGR, which we find compelling. Given lending volumes remain uncertain in the near term, investors will likely discount optimistic earnings growth until visibility into share growth and refinance activity improves. We are constructive on PFSI, although the overhang from the volume and margin uncertainty needs to clear before PFSI can witness meaningful appreciation."
PennyMac Financial closed on Monday at $21.14
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.