Market Overview

Wedbush Adjusts Targets On Credit Card Lenders, Pawn, Installment Names

Wedbush Adjusts Targets On Credit Card Lenders, Pawn, Installment Names

Wedbush has raised the price targets of specialty finance firms to reflect an increase in valuation multiples accompanying the rally in financials since November 9, impact of higher rates and changes in currency.

Commenting on the sector, analyst Henry Coffey Jr. believes a Republican Congress/presidency will result in less changes to financial services regulation than many expect. In fact, the brokerage expects a Trump administration will not repeal Dodd-Frank, but do anticipate the lifting of the SIFI threshold from its current $50 billion.

Further, the potential lifting of SIFI limit should trigger increased M&A/consolidation activity and could “prove to be a boon” to bank-funded mortgage originators such as Flagstar Bancorp Inc (NYSE: FBC).

“While we are expecting a less punitive CFPB, we doubt this bureau will back away from many of its core values and we expect them to move forward with their already articulated plans to regulate high rate (+36 percent) installment and payday lending,” Coffey wrote in a note.

In addition, Coffey predicts a Trump administration to widen access for millennials to housing finance and explore measures to ease student debt burdens.

“An expansion of Fannie’s new mortgage/student debt refinance product is just one of several possible developments,” Coffey added.

Against this backdrop, Wedbush made the following price target changes:



Price Target





Capital One Financial Corp. (NYSE: COF)




Discover Financial Services (NYSE: DFS)




Synchrony Financial (NYSE: SYF)




FirstCash Inc (NYSE: FCFS)




LendingClub Corp (NYSE: LC)




OneMain Holdings Inc (NYSE: OMF)




Flagstar Bancorp




PHH Corporation (NYSE: PHH)





Posted-In: Analyst Color News Price Target Politics Reiteration Topics Analyst Ratings General Best of Benzinga


Related Articles (COF + DFS)

View Comments and Join the Discussion!

Latest Ratings

AAPLWedbushInitiates Coverage On310.0
DHTJP MorganUpgrades0.0
DXCMGoldman SachsUpgrades125.0
ORLYJP MorganUpgrades398.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
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
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Analyst Expects Solid Q3 Results From Big Lots Despite Seasonal Challenges

For Some, The Outlook On Splunk Remains Cloudy Despite Q3 Earnings Beat