BTIG says shares of UWM Holdings (UWMC) are down 35% from its 52-week-high at the end of August, which is almost a full retrace back to levels last fall when mortgage rates were near 8%. The firm likes the current entry point at 10-times estimated next year’s earnings. UWM shares have room to recover even if rates are high, but “valuations further up the capital stack in the unsecured debt could remain a little sturdier over the very near-term as investors grapple with visibility for origination volume and margins next year,” the analyst tells investors in a research note. BTIG is budgeting $160B in production next year on a total origination market of $2.3 trillion. It keeps a Buy rating on the shares with a $10 price target
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
