Barclays analyst Terry Ma lowered the firm’s price target on First American (FAF) to $69 from $72 and keeps an Equal Weight rating on the shares. The key themes heading into 2025 for the specialty finance sector are a stable consumer, improving consumer credit trends, particularly in prime, higher for longer mortgage rates, and an easing regulatory backdrop, the analyst tells investors in a research note. The firm says share outperformance since the election “resulted in some pull-forward of returns for consumer lenders, making stock selection trickier.” The same playbook from 2024 applies in mortgage finance in 2025, and that is a preference for balanced business models, contends Barclays. It favors stocks “with positive catalysts that have not been fully priced in and could drive additional upside.” The firm thinks air lessors continue to be underappreciated and stepped to the sidelines on mortgage credit.
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Read More on FAF:
- First American price target raised to $86 from $84 at Deutsche Bank
- First American downgraded to Market Perform from Outperform at Keefe Bruyette
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
