UWM Holdings assumed with a Sell at UBS

UBS analyst Doug Harter assumed coverage of UWM Holdings with a Sell rating and $4 price target. The analyst initiated or assumed coverage of six mortgage banks. While down from their peak, the elevated level of mortgage rates should continue to weigh on near-term origination activity and the intermediate term outlook remains challenging as well, the analyst tells investors in a research note. The firm says the mortgage banks with a larger focus on servicing should continue to benefit from the slow prepayment environment and produce higher, more stable returns on equity. UBS sees downside risk to UWM shares as margin expectations are lowered.