Walker & Dunlop price target lowered to $105 from $115 at Wedbush

Wedbush lowered the firm’s price target on Walker & Dunlop to $105 from $115 and keeps a Neutral rating on the shares. The firm notes Q4 saw a sizable gain in the Fannie Mae business and in the investment sales area which helped revenues and AEBITDA exceed its forecast. Q4 also saw a meaningful number of Walker & Dunlop’s clients with assets secured by a floating rate loan who want to convert it to a fixed rate loan. To do such, many of these transactions require a cash-in refinancing from the current borrower or partnership structure. Many borrowers were not willing to put more cash into those deals during Q4 and that hesitancy has continued thus far in Q1 2025. As a result of that commentary and the company’s indication that the GSEs may be off to the typical slow start for the year, Wedbush is lowering its EPS and revenue estimates.