BTIG analyst Vincent Caintic has maintained their neutral stance on OMF stock, giving a Hold rating today.
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Vincent Caintic has given his Hold rating due to a combination of factors related to OneMain Holdings’ financial performance and market valuation. The analysis of May’s monthly data suggests a slightly better net charge-off rate for consumer loans than the consensus, which could lead to a 6% improvement in the second quarter of 2025’s earnings per share if the consensus adjusts accordingly. However, Caintic’s model, which uses historical multipliers on delinquencies, indicates that net charge-off roll rates are trending above historical levels, potentially impacting future earnings negatively.
Additionally, while early-stage delinquencies have increased after several months of decline, late-stage delinquencies have shown improvement. Despite these mixed signals, OneMain Holdings’ current trading range aligns with its typical forward price-to-earnings multiple, suggesting that the stock is fairly valued at present. Therefore, Caintic’s Hold rating reflects a balanced view of the company’s potential risks and rewards, given the current market conditions and financial metrics.
Caintic covers the Financial sector, focusing on stocks such as Capital One Financial, Ally Financial, and Open Lending. According to TipRanks, Caintic has an average return of -1.1% and a 46.31% success rate on recommended stocks.
In another report released today, Barclays also maintained a Hold rating on the stock with a $48.00 price target.