UPDATE: BMO Capital Downgrades OneMain (OMF) to Market Perform

April 18, 2021 9:36 PM EDT
Get Alerts OMF Hot Sheet
Price: $53.17 -2.55%

Rating Summary:
    18 Buy, 4 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 17 | Down: 15 | New: 8
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(Updated - April 19, 2021 5:18 AM EDT)

BMO Capital analyst James Fotheringham downgraded OneMain (NYSE: OMF) from Outperform to Market Perform with a price target of $60.00.

The analyst comments "After its impressive run, we downgrade OMF on valuation exclusively; P/E and P/TCE have tripled over the past year and are now well above historical averages. Our $60 target implies limited upside remaining, predicated on 3.5x pro forma TCE (normalized 50% RoTCE × 7x P/E) plus $3.60 per share excess capital (valued at 0.5x). This is not a call on the quarter, but our 1Q21E $2.01 estimate is 6% below consensus on higher operating expenses. We prefer market-oriented asset managers (KKR, APO, BEN, and VCTR) and investment banks (MS and GS)."

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 $55.21 yesterday.


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