Truist Securities lowered its price target for OneMain Holdings to $70 from $71 while maintaining a Buy rating on the consumer finance company’s shares. OneMain stock was trading at $56.83 and was down 11.7% year to date, with a reported price-to-earnings ratio of 8.57.
The revised target reflects lower earnings estimates and an 8.0x valuation multiple applied to projected 2027 earnings per share of $8.70. Truist said late-stage delinquency transfers to net charge-offs remain elevated, although the pace of deterioration is improving.
According to the firm, credit conditions have improved more slowly than anticipated. Pressure on customers from inflation remains the main obstacle, despite the stricter credit standards OneMain has maintained since mid-2022.
Truist reiterated its Buy recommendation because of the stock’s potential gain to its price target and its dividend yield. The reported dividend yield is 7.43%. The firm also identified monthly credit asset-backed securities data and OneMain’s 2027 outlook as possible catalysts if credit conditions continue to improve.
OneMain recently reported mixed third-quarter 2026 results. Adjusted earnings were $1.51 per diluted share, below the analyst consensus of $1.59, while revenue reached $1.36 billion, slightly above the $1.34 billion forecast.
The company also reported that managed receivables increased 9% year over year to $28.1 billion, while consumer loan originations rose 17%. BofA Securities maintained its Buy rating on OneMain but lowered its price target from $67 to $66.
Sources: Investing.com News.