PennyMac Financial initiated with an Equal Weight at Stephens

Stephens analyst Kyle Joseph initiated coverage of PennyMac Financial (PFSI) with an Equal Weight rating and $100 price target The firm says the company has “pioneered the balanced business model” between servicing and production. The stock is in the “penalty box” as its direct-to-consumer business did not enhance earnings in Q4, the analyst tells investors in a research note. Stephens looks to the next quarter with lower rates as an opportunity for PennyMac to prove the benefits of its balanced business model.