Strong Financial Performance and Positive Outlook Drive Buy Rating for OneMain Holdings

Bank of America Securities analyst Mihir Bhatia has reiterated their bullish stance on OMF stock, giving a Buy rating today.

Mihir Bhatia has given his Buy rating due to a combination of factors that highlight OneMain Holdings’ strong financial performance and positive outlook. The company reported first-quarter earnings per share that exceeded both Bank of America’s and the market’s expectations, driven by higher other revenues. Despite some minor offsets from lower net interest income and increased expenses, the overall performance was solid, with credit trends continuing to improve.
Additionally, OneMain Holdings maintains a conservative approach and offers a substantial dividend yield of 8.5% at current prices. The company’s guidance remains stable, with no signs of consumer weakness, and it has been proactive in accounting for potential macroeconomic challenges. The positive credit trends, combined with the potential benefits from the industrial loan company bank, support the reiterated Buy rating and the price objective of $61.00 USD.

Bhatia covers the Financial sector, focusing on stocks such as Synchrony Financial, Capital One Financial, and American Express. According to TipRanks, Bhatia has an average return of 7.6% and a 58.46% success rate on recommended stocks.

In another report released today, JMP Securities also reiterated a Buy rating on the stock with a $65.00 price target.