PennyMac Mortgage price target lowered to $14 from $18 at Barclays

Barclays analyst Mark DeVries lowered the firm’s price target on PennyMac Mortgage to $14 from $18 and keeps an Equal Weight rating on the shares. The analyst has turned neutral on the U.S. consumer finance sector with a "recession looking likely in 2023" and downgraded 10 stocks. He sees "inexpensive consumer finance stocks getting more inexpensive" and downgraded names stocks levered to credit. Card issuers and instalment lenders could struggle against the economic backdrop and may trade at trough multiples, DeVries tells investors in a research note. The analyst sees more value in air lessors, with AerCap raised to top pick and Air Lease also rated Overweight. DeVries also thinks a transition to a weaker credit environment may put pressure on mortgage insurers.