In a report released on July 25, Mihir Bhatia from Bank of America Securities reiterated a Buy rating on OneMain Holdings, with a price target of $65.00.
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Mihir Bhatia has given his Buy rating due to a combination of factors, primarily driven by OneMain Holdings’ strong performance in the second quarter. The company’s credit performance exceeded expectations, showcasing the strength of its underwriting discipline. The ‘front book,’ which now makes up a significant portion of the portfolio, is performing well, and there is potential for future upside if credit trends continue to improve.
Management’s optimistic outlook on revenue growth, expecting it to hit the higher end of the guidance range, and a tightened net charge-off outlook further support the Buy rating. Despite some concerns about operating expenses and a flat reserve rate, the overall financial results, including a notable earnings per share beat, have led to an increase in future earnings estimates and a raised price objective. These factors collectively contribute to the positive assessment of OneMain Holdings’ stock.
In another report released on July 25, TD Cowen also maintained a Buy rating on the stock with a $69.00 price target.
Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of OMF in relation to earlier this year.