Walker & Dunlop stock rating upgraded by Citizens on interest rate cuts

Published 10/10/2025, 09:44
Walker & Dunlop stock rating upgraded by Citizens on interest rate cuts

Investing.com - Walker & Dunlop (NYSE:WD) received an upgrade from Citizens on Friday, with analyst Steven DeLaney raising the company’s rating from Market Perform to Market Outperform and setting a price target of $95.00.

The upgrade follows the Federal Reserve’s 25 basis point rate cut at its September meeting, which ended a nearly year-long pause in the central bank’s rate-cutting cycle.

Citizens cited Walker & Dunlop’s capital-light business model, which is closely tied to interest rates, as a key factor that should boost the company’s transaction and lending activity as lower rates spur more demand in the real estate sector.

The research firm noted that futures markets suggest an additional 100 basis points of rate cuts through the end of 2026, positioning Walker & Dunlop to capitalize on improving conditions in the multifamily real estate market.

The $95 price target represents a potential total return of approximately 21%, including the current cash yield of 3.4%, and is based on a price-to-earnings multiple of 22.3x on Citizens’ 2026 earnings per share estimate of $4.25. InvestingPro analysis reveals that Walker & Dunlop has raised its dividend for 7 consecutive years, with subscribers having access to many more valuable insights about the company’s financial health and growth prospects.

In other recent news, Walker & Dunlop Inc. reported impressive financial results for Q2 2025, exceeding analyst expectations. The company achieved an earnings per share (EPS) of $1.15, significantly higher than the projected $0.74, marking an earnings surprise of 55.41%. Additionally, revenue reached $319.2 million, surpassing the forecasted $276.28 million. These results reflect the company’s strong market positioning and operational efficiency. In a separate development, Walker & Dunlop announced that CEO William Walker received performance stock units under the company’s 2024 Equity Incentive Plan. The award is contingent upon the company’s annualized total stockholder return exceeding that of the S&P 600 Small Cap Financials Index by at least 1.0 percentage point over a three-year period. These recent developments highlight Walker & Dunlop’s strategic initiatives and financial performance.

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