Eric Hagen, an analyst from BTIG, maintained the Buy rating on Guild Holdings (GHLD – Research Report). The associated price target remains the same with $18.00.
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Eric Hagen has given his Buy rating due to a combination of factors surrounding Guild Holdings’ recent acquisition agreement with Bayview Asset Management. The deal, valued at $1.3 billion, offers a significant premium over Guild’s tangible book value and positions the company to operate as a privately held entity. This acquisition is expected to enhance Guild’s operational scale and leverage its direct-to-consumer origination model, which is known for its personalized borrower engagement.
Hagen believes that the integration with Bayview’s extensive mortgage servicing portfolio will bolster Guild’s ability to manage prepayment risks effectively. Guild’s strong track record in borrower recapture rates and its capacity to originate a substantial volume of loans further support the positive outlook. The strategic alignment with Bayview’s objectives and the potential for higher earnings through direct loan origination and sale are key reasons for the Buy rating.
GHLD’s price has also changed dramatically for the past six months – from $14.070 to $19.770, which is a 40.51% increase.