OneMain Holdings, the Financial sector company, was revisited by a Wall Street analyst today. Analyst Moshe Orenbuch from TD Cowen maintained a Buy rating on the stock and has a $72.00 price target.
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Moshe Orenbuch has given his Buy rating due to a combination of factors influencing OneMain Holdings’ recent performance and future prospects. The company reported third-quarter earnings per share (EPS) of $1.90, surpassing both his estimate and the consensus forecast. This was largely driven by stronger-than-expected revenue, particularly in net interest income (NII), as a result of effective pricing strategies and a favorable yield on credit cards, alongside reduced funding costs due to refinancing efforts.
Management’s positive outlook and strategic actions further support the Buy rating. They have raised growth targets and increased the share buyback authorization, signaling confidence in sustained profitability. The stabilization of credit trends, especially in the card segment, coupled with improved loan yield and cost of funds, suggests that OneMain Holdings is well-positioned for profitable growth. These factors, along with the company’s ability to enhance capital returns, contribute to a positive investment outlook, justifying the increased price target of $72.
In another report released today, Bank of America Securities also maintained a Buy rating on the stock with a $65.00 price target.