OneMain stock rating reiterated at Market Outperform by JMP analyst

Published 28/07/2025, 10:04
OneMain stock rating reiterated at Market Outperform by JMP analyst

Investing.com - Citizens JMP analyst David Scharf has reiterated a Market Outperform rating and $65.00 price target on OneMain (NYSE:OMF), following the company’s second-quarter results released Friday. The stock, currently trading at $59.39, is approaching its 52-week high of $60.33, with InvestingPro analysis indicating the company is slightly undervalued based on its Fair Value model.

OneMain shares rose 1.3% after the company reported Core EPS of $1.45 in the second quarter, exceeding both JMP’s estimate of $1.29 and the Street’s expectation of $1.26. The earnings upside was primarily driven by credit outperformance.

The lender reversed course after over-reserving at the end of the first quarter, a pattern observed across other lenders this earnings season. OneMain also delivered approximately 60% year-over-year growth in capital generation.

Management provided updated guidance indicating incrementally lower yield in the second half of the year, as the larger share of auto receivables continues to steadily alter portfolio composition.

JMP maintained its $65 price target, representing approximately 8 times the firm’s updated 2026 EPS estimate. Including the dividend, which provides approximately 7% yield, this represents a total potential return of about 16% over the next 12 months.

In other recent news, OneMain Holdings Inc. reported its financial results for the second quarter of 2025, exceeding earnings per share (EPS) expectations. The company achieved an EPS of $1.45, surpassing the forecasted $1.23, marking a 17.89% positive surprise. However, revenue slightly missed projections, coming in at $1.2 billion compared to the expected $1.21 billion. Despite the revenue miss, the earnings performance was well-received. The company’s stock showed a positive reaction in pre-market trading. These recent developments highlight OneMain Holdings’ ability to outperform earnings forecasts.

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