OneMain application for Utah bank charter an incremental positive, says Barclays

Barclays reiterated an Equal Weight rating and $56 price target on OneMain (OMF) after the company applied for a bank charter with the Utah Department of Financial Institutions. Overall, the firm views the application as an incremental positive, as it would allow the company, if approved, the ability to price products nationally at the 36% APR, and potential lower funding costs through deposits. Barclays also believes the change in administration and focus on deregulation could make an approval easier, though ultimately it could take a year for approval and another year to set up the bank, making this more of a 2027 event.