LoanDepot price target raised to $1.50 from $1.25 at BofA

BofA analyst Derek Hewett raised the firm’s price target on LoanDepot (LDI) to $1.50 from $1.25 and keeps an Underperform rating on the shares. Following the company’s Q2 report, the firm is lowering its 2025 EPS estimate due to lower revenue, partially offset by lower operating expense, while slightly increasing its 2026 EPS estimate due to slightly higher gain on sale revenue. More broadly, the firm remains cautious on the mortgage sector due to high rates and elevated competition, which should continue to weigh on production volume and margins, the analyst tells investors.