Market Overview

Morgan Stanley Sees Growth Thesis Remaining Intact For Santander Consumer USA Holdings


In a report published Monday, Morgan Stanley analyst Cheryl M. Pate reiterated an Overweight rating and $30.00 price target on Santander Consumer USA Holdings (NYSE: SC).

In the report, Morgan Stanley noted, “While SC was conservatively being more selective in Chrysler Capital loan volumes early in 2Q when management viewed 640-750 FICO loans as mispriced, management noted that volumes have been strong in June and pricing dynamics have improved. Additionally, the penetration targets required from the Chrysler relationship limit the downside risks to origination volumes, in our view.

"While we expect more loan sales in near-prime / upper subprime buckets at the margin, we had always expected all prime originations to be sold through SC's flow programs. Moving from our prior estimate of ~33% sales in the non-prime bucket to 40-45% does not impact our estimates as higher servicing / gain on sale revenues and lower provisioning offset lower net interest income on a smaller retained portfolio.”

Santander Consumer USA Holdings closed on Friday at $18.76.

Latest Ratings for SC

Nov 2019MaintainsEqual-Weight
Nov 2019DowngradesBuyNeutral
Sep 2019DowngradesEqual-WeightUnderweight

View More Analyst Ratings for SC
View the Latest Analyst Ratings

Posted-In: Cheryl M. Pate Morgan StanleyAnalyst Color Reiteration Analyst Ratings


Related Articles (SC)

View Comments and Join the Discussion!

Latest Ratings

PLCEB. Riley FBRDowngrades59.0
ASPUCanaccord GenuityMaintains11.0
AAPLEvercore ISI GroupMaintains305.0
THTXMackie ResearchUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Benzinga's Top Upgrades

UPDATE: Bank Of America Reiterates On Tempur Sealy International Following Positive Feedback On New Products