Velocity Financial reinstated with a Neutral at Citi

Citi reinstated coverage of Velocity Financial with a Neutral rating and $16 price target. The firm “remains optimistic” of the origination trend ahead and earnings support provided by its non-performing loan resolution activities, but risks remain with a potential economic slowdown ahead, the analyst tells investors in a research note. Citi adds that it continues to view Velocity’s risk-reward as relatively balanced at current levels.