Onity Group upgraded to Outperform from Market Perform at Keefe Bruyette

Keefe Bruyette analyst Bose George upgraded Onity Group to Outperform from Market Perform with a price target of $33, up from $32. The analyst continues to believe that companies with significant servicing exposure can generate mid-teens returns on equity, driven by their servicing portfolios. The firm does not expect mortgage origination earnings to improve materially through 2026. Keefe upgraded Onity as it thinks the shares are undervalued given the progress the company has made in reducing its leverage profile and improving profitability.