PennyMac Financial price target raised to $132 from $125 at Piper Sandler

Piper Sandler raised the firm’s price target on PennyMac Financial (PFSI) to $132 from $125 and keeps an Overweight rating on the shares. The firm notes PennyMac posted an operating beat and a 20% operating ROE as mortgage rates rallied in the quarter. This was a strong origination quarter for the company as volumes grew 17% quarter-over-quarter, while gain on sale margins increased 26 bps to 0.87%. In addition, servicing income remained solid as PennyMac continued to growth their portfolio and benefit from scale efficiencies, Piper says.