PennyMac Financial price target lowered to $110 from $115 at UBS

UBS analyst Doug Harter lowered the firm’s price target on PennyMac Financial (PFSI) to $110 from $115 and keeps a Neutral rating on the shares as part of a Q1 mortgage banking preview. The environment continued to be more favorable for servicing earnings than originations in Q1 as seasonality weighed on volumes in the quarter, the analyst tells investors in a research note. The firm says that while there is downside risk to Q1 funded volume estimates, the late quarter pickup in refinance volume should benefit lock volume and reduces the risk to estimates.