
ONIT Stock Forecast & Price Target
ONIT Analyst Ratings
Bulls say
Onity Group Inc. is expected to see a positive trend in its stock driven by multiple expansion and growth in book value, bolstered by the anticipated reversal of the deferred tax asset (DTA) valuation allowance, which may equate to $22 per share by year-end. The consumer direct segment experienced significant growth, with volumes increasing by 29% sequentially to $384 million, while maintaining stable margins of 321 basis points compared to the previous quarter. Additionally, the overall funded volume surged by 34% quarter-over-quarter, reaching $9.4 billion, indicating strong operational performance and demand for its mortgage servicing and origination solutions.
Bears say
Onity Group Inc's origination segment experienced a decline in pre-tax income, reporting $9 million in the latest quarter compared to $10 million in the previous quarter, highlighting potential challenges in maintaining profitability. Additionally, the reverse mortgage segment faced a 6% decrease in volume quarter-over-quarter, falling to $166 million, alongside a drop in segment margins from 392 basis points to 367 basis points, indicating pressure on revenue streams. Moreover, the forecast for the next few years shows a downward revision in estimates, projecting adjusted return on equity to remain relatively flat, suggesting stagnant growth prospects in the near term.
This aggregate rating is based on analysts' research of Onity Group Inc and is not a guaranteed prediction by Public.com or investment advice.
ONIT Analyst Forecast & Price Prediction
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