Balanced Hold Rating on OneMain Holdings Amid Adjusted EPS and Valuation Concerns

BTIG analyst Vincent Caintic has maintained their neutral stance on OMF stock, giving a Hold rating today.

Vincent Caintic has given his Hold rating due to a combination of factors related to OneMain Holdings’ financial performance and market valuation. The analyst has adjusted the earnings per share (EPS) estimate for the first quarter of 2025 to $1.37, which is a 4% increase but still falls short of the consensus estimate of $1.57. This adjustment aligns more closely with the consensus on net charge-offs (NCOs), which are projected at 8.22%, while Caintic’s estimate is slightly higher at 8.26%.
Despite some improvements in delinquency rates, which have shown month-over-month declines, the overall financial outlook remains cautious. The full-year 2025 consolidated loss estimate is at the higher end of the guidance range, indicating potential risks. Additionally, the valuation of OneMain Holdings’ shares, based on a forward price-to-earnings multiple, suggests that the current trading range of $44-$66 is appropriate. Given these factors, Caintic maintains a Hold rating, reflecting a balanced view of potential risks and rewards.

According to TipRanks, Caintic is an analyst with an average return of -2.7% and a 43.81% success rate. Caintic covers the Financial sector, focusing on stocks such as American Express, Ally Financial, and SoFi Technologies.

In another report released today, Barclays also maintained a Hold rating on the stock with a $48.00 price target.