Wedbush adds Walker & Dunlop to Best Ideas List, raises price target to $110

Wedbush analyst Henry Coffey raised the firm’s price target on Walker & Dunlop to $110 from $90 and keeps an Outperform rating on the shares. The firm also added the name to its Best Ideas List. Despite a modest jump following a solid November jobs report, the 10-year treasury yield is still down about 75 bps compared to a peak near 5% in October, and Wedbush believes that a 10-year below 4.50% could allow for some incremental boost to transaction volumes, which have remained stagnant for much of 2023. A further decline in rates in 2024 would be a clear positive for Walker & Dunlop, but even if rates remain elevated, 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, says the firm.