First American price target lowered to $63 from $67 at Keefe Bruyette

Keefe Bruyette lowered the firm’s price target on First American to $63 from $67 and keeps an Outperform rating on the shares. The analyst trimmed 2024 and 2025E earnings estimates for the title insurers. The new estimates incorporate trends from the April and May monthly numbers and continue to assume mortgage volumes will not increase meaningfully through year-end 2025, in line with Keefe’s economic baseline and its sideways housing thesis, the analyst tells investors in a research note. While the Q2 earnings should be stronger than Q1 due to seasonality, the year-over-year growth is expected to “remain tepid,” the firm says. It continues to see First American (FAF) as the best way to play the eventual recovery in volumes.