BofA lowered the firm’s price target on PennyMac Mortgage (PMT) to $12.50 from $13.50 and keeps a Neutral rating on the shares. Following a Q2 miss, the firm is lowering its 2025 EPS estimate and “modestly lowering” its 2026 EPS estimate due to higher operating expense estimates. 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.
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