Piper Sandler sees macro headwinds for PennyMac, slashes PT

PennyMac Financial Services

06/05/2022 12:40

** Piper Sandler cuts price target for mortgage co PennyMac
Financial Services Inc  PFSI.N  to $82 from $98
    ** New PT marks a 70% upside to stock's last close vs a 103%
upside for previous PT
    ** The competition in the mortgage market is more intense
than 2018, when many originators struggled to break even: Piper
Sandler
    ** Higher interest rates are eating into demand and PFSI
will continue to experience pressures in the near term,
brokerage says
    ** Higher expenses also adding to woes for PFSI, Piper
Sandler adds
    ** After market close on Thursday, PFSI reported Q1 EPS of
$2.94  urn:newsml:reuters.com:*:nBw7wXB05a
    ** Core EPS was $1.61, Piper Sandler estimated, below Street
estimate of $2.45
    ** Miss primarily driven by headwinds from higher interest
rates, brokerage adds
    ** YTD, PFSI stock has lost nearly 31%

 (Reporting by Niket Nishant in Bengaluru)
 ((Niket.Nishant@thomsonreuters.com;))