Walker & Dunlop stumbles after Wedbush downgrade

Walker & Dunlop

11/04/2024 16:52

** Walker & Dunlop  WD.N  shares down down 3.5% to $89.39,
poised for second straight session of declines
    ** Shares fell as much as 5.9% to $87.20, briefly dipping
below 200-day MA avg of $87.65
    ** Wedbush downgraded the commercial real estate finance and
advisory services firm to "neutral" from "outperform" and
removed it from their "Best Ideas" list
    ** Analysts said current spike in yields on the 10-yr
 US10YT=RR  above 4.50% has forced a rethink on the group, as
operative position was if yield held below that level, most of
the housing finance cos would be able to operate "with an
acceptable (though less than stellar) level of origination
volumes, gain on sale margins, lending spreads, and operating
margins."
    ** Recent data on labor market and inflation has pushed
Treasury yields higher, as markets rethink timing and size of
any potential rate cuts from the Fed this year 
    ** Wedbush said higher rates and rate volatility could keep
transaction volumes subdued this year, although it does not
anticipate WD will suffer from any outsized credit issues 
    ** Firm also cut price target to $95 from $130
    ** Among the 5 analysts that cover Walker & Dunlop, the
breakdown of recommendations are 1 "strong buy" or "buy," 4
"hold" and no "sell" or "strong sell." rating; on avg rating it
"HOLD," per LSEG data
    ** Median price target of $105 is down from $125 a month ago







 (Reporting by Chuck Mikolajczak)
 ((charles.mikolajczak@tr.com; @ChuckMik;))