OneMain price target raised to $55 from $50 at RBC Capital

RBC Capital analyst Kenneth Lee raised the firm’s price target on OneMain to $55 from $50 and keeps an Outperform rating on the shares. The firm is updating its model to reflect operating expense assumptions being slightly higher, closer to the midpoint of management’s outlook, revising its investment income assumptions downwards to better follow its outlook for a potential decline in rates, and also adjusting its share repurchase assumptions downwards due to its slightly revised outlook on capital return/payout ratio in the near-term. RBC adds that it’s FY24 EPS is reduced to $5.76 from $6.63, though its higher price target is due to an upwardly revised target multiple due to more favorable macro outlook.