UBS has revised its price target for LoanDepot (LDI, Financial), lowering it to $1.25 from the previous $1.35, while maintaining a Neutral rating on the stock. This adjustment comes as part of UBS's outlook on the first-quarter performance in the mortgage banking sector.
The firm notes that the first quarter presented a more favorable environment for earnings from servicing rather than from originations. Seasonality played a role in dampening volume during the quarter, posing a challenge to the business. However, a late-quarter rise in refinance activity is expected to enhance lock volumes, which could mitigate some of the risks to the firm's estimates.
Despite potential risks to the funded volume projections for the quarter, the uptick in refinancing offers a silver lining for LoanDepot's financial forecasts. Investors will watch closely how these dynamics impact the company's performance in the months ahead.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for loanDepot Inc (LDI, Financial) is $1.84 with a high estimate of $3.00 and a low estimate of $1.35. The average target implies an upside of 64.06% from the current price of $1.12. More detailed estimate data can be found on the loanDepot Inc (LDI) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, loanDepot Inc's (LDI, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for loanDepot Inc (LDI, Financial) in one year is $2.83, suggesting a upside of 152.68% from the current price of $1.12. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the loanDepot Inc (LDI) Summary page.
