BTIG says would buy PennyMac Financial weakness

BTIG keeps a Buy rating and $150 price target on PennyMac Financial (PFSI) after its results. The stock is down almost 20% in after-hours trading on the earnings miss driven by faster prepayment speeds, though the firm would be a “buyers on weakness”. The stock still screens inexpensive at 10-times earnings, and the driving narrative is the Administration’s demonstrable support for housing affordability, especially if policy solutions are aimed at first-time homebuyers, which the company leans into as a top originator in the FHA channel, the analyst tells investors in a research note.