Eric Hagen, an analyst from BTIG, maintained the Buy rating on UWM Holding. The associated price target remains the same with $10.00.
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Eric Hagen has given his Buy rating due to a combination of factors tied to UWM’s planned all‑stock acquisition of Two Harbors and the strategic benefits that result. He views the deal as fairly priced compared with other recent sector transactions and believes it meaningfully expands UWM’s tangible equity base, servicing portfolio, and overall scale. In his view, the larger, more liquid equity float post‑transaction should make the shares more attractive to a broader investor base, while the enlarged servicing platform positions the company to better capture value over time. He also underscores that the combined company’s assets are largely Agency collateral, which simplifies the regulatory review and integration case in his analysis.
At a business-model level, Hagen argues the merger helps rebalance UWM away from being seen primarily as a pure originator and more toward a diversified mix of origination and servicing cash flows. This shift, together with UWM’s ongoing dividend and earnings outlook, underpins his 15x earnings valuation framework and $10 price target, which assumes some moderation in mortgage rates from current levels. He highlights that the operational and balance sheet considerations around subservicing integration and Two Harbors’ convertible debt appear manageable, even allowing for some rate and spread volatility. Overall, he concludes that the enhanced scale, improved recapture potential, and more balanced earnings profile justify a Buy rating on the stock.
In another report released today, Barclays also maintained a Buy rating on the stock with a $7.00 price target.