UWM Holdings price target raised to $7 from $6.50 at Wedbush

Wedbush analyst Jay McCanless raised the firm’s price target on UWM Holdings to $7 from $6.50 and keeps a Neutral rating on the shares. The firm notes 30-year mortgage rates are down nearly 100 bps from their recent peak in October, and following the Fed pivot in December, Fed fund futures are now calling for 150bps of rate cuts in 2024. While Wedbush does expect that lower rates will have some positive impact on the mortgage origination market in 2024, housing affordability and supply issues aren’t likely to go away anytime soon. The firm anticipates that 2024 will be a purchase-centric market once again, as even with the projected drop-in rates, most outstanding mortgages will be well out of the money to refinance.