BTIG sees ‘fair’ valuation in UWM’s $1.3B Two Harbors deal

BTIG notes UWM Holdings (UWMC) has announced a definitive merger agreement to acquire Two Harbors (TWO) in an all-stock transaction valued at $1.3B in equity value. The firm sees attractive elements and synergies for both companies, which revolve around the key theme of adding value through scale and recapture, which BTIG considers the groundwork behind several M&A transactions in the space this year. The firm thinks the deal valuation is fair considering the other M&A deals this year, and it believes a key motivation for UWM is increasing the float/liquidity in the stock. BTIG has a Buy rating on UWM with a price target of $10 on the shares.