UPDATE: Piper Sandler Starts LoanDepot Inc (LDI) at Neutral
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Piper Sandler analyst Kevin Barker initiates coverage on LoanDepot Inc (NYSE: LDI) with a Neutral rating and a price target of $20.00.
The analyst commented, "LDI is developing one of the stronger franchises within the mortgage origination industry with the company generating significant market share gains in the highest margin origination channel. This growth came about due to years of investment in the company's brand and technology platform. Over the long-term, this should lead to a premium P/Emultiple relative to peers, but with the stock currently trading to 1.5x premium to peers on FY22E P/E, we believe some franchise value is embedded in the stock price today especially after taking into account the limited stock available to trade. We also note the company tends to generate more refinance volume compared to the industry and therefore, could have greater cyclicality versus peers. We would be more positive if the company can continue to generate market share gains despite higher rates."
Shares of LoanDepot Inc closed at $19.22 yesterday.
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