First American downgraded to Market Perform from Outperform at Keefe Bruyette

Keefe Bruyette analyst Bose George downgraded First American (FAF) to Market Perform from Outperform with an unchanged price target of $80. The firm says the current rate backdrop suggests that a more meaningful recovery in the purchase market is likely to get pushed out past 2025. Given the higher rate expectations, Keefe are most positive on the mortgage insurers going into 2025. While title insurers appear relatively well positioned to grow margins and earnings in 2025, the firm sees limited positive catalysts near term for the shares, leading to the downgrade of First American, the analyst adds.