Northland downgraded OneMain Holdings to Market Perform from Outperform with a price target of $49, up from $46. The analyst believes OneMain’s back book “continues to be a headache” going into 2024 which can drive higher delinquencies and losses. In addition, some pressure on yields which have dropped over the last two years while interest expense has increased due to higher rates have also pressured revenue and profitability, the analyst tells investors in a research note. As such, the firm believes OneMain’s adjusted earnings may face headwinds in 2024 while multiple expansion will be challenged too.
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