Jefferies Cuts Price Target on OneMain Holdings (OMF) to $30; Reiterates Buy

November 8, 2016 7:25 AM EST
Get Alerts OMF Hot Sheet
Price: $22.03 -0.94%

Rating Summary:
    4 Buy, 10 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
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Jefferies maintained a Buy rating on OneMain Holdings (NYSE: OMF), and cut the price target to $30.00 (from $40.00), following the company's 3Q earnings report. OMF reported EPS of $0.90, versus the consensus of $1.06. Management provided updated core EPS guidance, reducing 2016 core EPS guidance from $4.20-$4.70 to $3.60-$3.70 and 2017 core EPS guidance from $5.60-$6.10 to $3.75-$4.00.

Analyst John Hecht commented, "OMF reported core EPS of $0.90, versus JEFe of $1.04 and consensus of $1.06. The company reduced 2017 core EPS guidance ~33% at the mid-point, which we believe is attributable to integration missteps which have negatively impacted origination volumes and are impacting credit metrics. While the results/ guidance were disappointing, we believe the earnings power of the combined entity remains attractive in the context of the valuation."

For an analyst ratings summary and ratings history on OneMain click here. For more ratings news on OneMain click here.

Shares of OneMain closed at $27.57 yesterday.

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