Velocity Financial price target lowered to $13 from $14 at Citi

Citi analyst Arren Cyganovich lowered the firm’s price target on Velocity Financial to $13 from $14 and keeps a Neutral rating on the shares ahead of the Q3 report. The analyst expects consumer finance companies to see additional net interest margin compression near-term as the firm expects one more rate hike and a higher for longer interest rate environment. Credit quality, while still weakening, continues to hold in better than expected and the outlook “remains cautiously positive” given a still-strong employment environment, the analyst tells investors in a research note.