OneMain stock price target lowered to $63 by Citizens on reserve levels

Published 13/10/2025, 10:26
OneMain stock price target lowered to $63 by Citizens on reserve levels

Investing.com - Citizens analyst firm lowered its price target on OneMain (NYSE:OMF) to $63.00 from $65.00 on Monday, while maintaining its Market Outperform rating on the consumer finance company’s stock. According to InvestingPro data, OneMain, with a market capitalization of $6.2 billion, currently trades at an attractive P/E ratio of 9.5x and offers a substantial 8% dividend yield.

The price target adjustment comes as Citizens noted that several lenders concluded the second quarter with reserve levels that appeared elevated relative to their loss guidance.

Citizens specifically highlighted OneMain Financial among companies with this reserve-to-guidance discrepancy in its analysis of the financial sector.

Despite the price target reduction, Citizens continues to maintain its positive Market Outperform rating on OneMain, suggesting confidence in the company’s overall performance outlook.

The firm also identified Synchrony Financial (NYSE:SYF) as another lender with elevated reserve levels, maintaining a Market Outperform rating on that company with an $88 price target.

In other recent news, OneMain Holdings has been active in the financial markets with significant bond issuances. The company announced the issuance of $800 million in 6.5% senior notes due in 2033 and $750 million in 6.125% senior notes due in 2030. Both sets of notes are senior unsecured obligations and are guaranteed by OneMain Holdings but not by its subsidiaries. Additionally, OneMain’s second-quarter earnings report revealed a Core EPS of $1.45, surpassing expectations from both JMP analysts and the broader market.

In terms of analyst ratings, RBC Capital has reiterated its Outperform rating with a price target of $68, focusing on the company’s asset-backed securities trust data. Meanwhile, Wells Fargo initiated coverage with an Equal Weight rating and a $60 price target, citing concerns over non-prime credit in the current economic climate. Citizens JMP analyst David Scharf also maintained a Market Outperform rating with a $65 price target, noting the company’s credit outperformance as a key factor. These developments offer insights into the financial strategies and market perceptions surrounding OneMain Holdings.

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