LoanDepot downgraded to Sell from Neutral at Goldman Sachs

Goldman Sachs analyst Ryan Nash downgraded LoanDepot to Sell from Neutral with a price target of $3, up from $1.75. The shares have risen 180% since mortgage rates peaked and declined 120 basis points as investors have become more optimistic on the ability to return to profitability and the potential earnings power longer term, the analyst tells investors in a research note. Despite this, the firm still thinks LoanDepot’s fundamentals in 2024 will be challenged, as it estimates the company won’t reach break even profit until mid-2024, as volume and margins remain under pressure.