Walker & Dunlop price target raised to $130 from $110 at Wedbush

Wedbush raised the firm’s price target on Walker & Dunlop to $130 from $110 and keeps an Outperform rating on the shares. Since the firm added Walker and Dunlop to the Wedbush Best Ideas List on December 11, the 10 year has fallen another 40 bps to about 3.85%. The firm believes that this additional drop in rates, assuming it holds, should lead to an incremental boost to transaction volumes in the coming months. A further decline in rates in 2024 would be a clear positive for Walker & Dunlop. However, even if rates move modestly higher, a less volatile rate environment could help to spur continued transaction activity, as cap rates adjust to financing costs, and negative leverage becomes less severe, Wedbush argues.