Piper Sandler has revised its price target for PennyMac Financial Services (PFSI, Financial), reducing it slightly from $130 to $128. The adjustment comes in response to slightly lower projections for the company's tangible book value. Despite this revision, the Overweight rating on the shares has been maintained.
PennyMac has reported an operational setback, primarily due to a decline in gain on sale income. This downturn was somewhat counterbalanced by a rise in servicing fees. Nevertheless, the company has sustained its return on equity (ROE) forecast, anticipating it to remain in the "mid-to-high teens" range by 2025, despite confronting challenges within the mortgage sector.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for PennyMac Financial Services Inc (PFSI, Financial) is $125.25 with a high estimate of $141.00 and a low estimate of $110.00. The average target implies an upside of 29.93% from the current price of $96.40. More detailed estimate data can be found on the PennyMac Financial Services Inc (PFSI) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, PennyMac Financial Services Inc's (PFSI, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" 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 PennyMac Financial Services Inc (PFSI, Financial) in one year is $79.72, suggesting a downside of 17.3% from the current price of $96.4. 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 PennyMac Financial Services Inc (PFSI) Summary page.
