UWM Holdings Corporation (NYSE:UWMC) is among the best fundamentally strong penny stocks to buy according to analysts. On December 19, Jefferies assumed coverage on UWM Holdings Corporation (NYSE:UWMC) with a Hold rating and a price target of $5, suggesting a potential upside of about 3%. This is in line with the consensus estimate, as nearly 80% of analysts covering the stock have assigned it a ‘Hold’ rating.
The global investment bank highlighted the company’s structural positioning and high operating leverage as it enters the upcoming mortgage cycle, but noted that the current valuation presents a balanced risk-reward profile.
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Jefferies acknowledged the company’s prospects in the long haul, citing AI-powered systems that could improve volume and gain-on-sale margins, cost efficiencies expected by 2027, and broker channel expansion. Despite these factors, the firm pointed out that the stock price has already priced in “a material portion of the medium-term recovery narrative” for the mortgage market.
Just a day earlier, Keefe Bruyette lifted the price target on UWM Holdings Corporation (NYSE:UWMC) to $6.75 from $6.50, with an unchanged ‘Market Perform’ rating, according to TheFly. The firm appears reasonably constructive on the mortgage insurers, considering the projection that the enterprises will achieve double-digit book value growth, according to the analyst’s note.
On the other hand, Jeffrey Adelson from Morgan Stanley trimmed the price target on UWM Holdings Corporation (NYSE:UWMC) to $6 from $6.50, while keeping an ‘Equal Weight’ rating on December 16.
UWM Holdings Corporation (NYSE:UWMC) is a Michigan-based company specializing in origination, sale, and servicing residential mortgage lending. Founded in 1986, the company originates primarily from conforming and government loans.
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