In a report released on March 14, John Hecht from Jefferies maintained a Buy rating on OneMain Holdings (OMF – Research Report), with a price target of $62.00.
John Hecht has given his Buy rating due to a combination of factors including OneMain Holdings’ performance in terms of net charge-offs (NCOs) and delinquencies (DQs). The February data indicated that NCOs were trending slightly below the consensus estimate for the first quarter of 2025, suggesting a better-than-expected financial outcome. Despite a slow start to the tax refund season, which may have temporarily affected delinquencies, the overall trend for NCOs showed improvement.
Furthermore, the month-over-month and year-over-year analysis of delinquencies and net charge-offs revealed a mixed but generally positive outlook. February’s NCOs rose slightly more than the historical average, but the year-over-year change showed a significant improvement. This suggests that OneMain Holdings is managing its credit risk effectively, which supports the Buy rating given by John Hecht.
Hecht covers the Financial sector, focusing on stocks such as Capital One Financial, Discover Financial Services, and Ally Financial. According to TipRanks, Hecht has an average return of 9.3% and a 56.63% success rate on recommended stocks.
In another report released on March 14, TD Cowen also maintained a Buy rating on the stock with a $62.00 price target.