PennyMac Financial upgraded to Outperform from Market Perform at Keefe Bruyette

Keefe Bruyette analyst Bose George upgraded PennyMac Financial to Outperform from Market Perform with a price target of $105, up from $100. The analyst thinks PennyMac’s “strong” servicing earnings should continue to benefit from the “higher for longer” interest rate environment. The firm notes the forward curve has moved towards two 25 basis point cuts in 2024. Keefe continues to believe the company’s diversified business model should lead to continued book value growth in any interest rate environment.