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Investing.com - Wells Fargo has initiated coverage on OneMain Holdings (NYSE:OMF) with an Equal Weight rating and a price target of $60.00, according to a research note released Monday. The stock, currently trading near its 52-week high of $60.41, has demonstrated strong momentum with a 33% return over the past year.
The financial services firm cited concerns about non-prime credit in an uncertain macroeconomic environment as a key factor in its neutral stance on the consumer finance company. According to InvestingPro data, OneMain maintains a robust financial health score, with particularly strong metrics in profitability and price momentum.
Wells Fargo acknowledged recent improvements in OneMain’s credit trends but maintained that an Equal Weight rating is appropriate given current market conditions.
The $60 price target is based on approximately 7 times Wells Fargo’s 2026 earnings per share estimate for OneMain, slightly above the company’s historical multiple of about 6.5 times over the past five years.
The research note indicated that the assigned multiple represents a discount to typical valuations for consumer finance companies, reflecting OneMain’s focus on non-prime lending.
In other recent news, OneMain Holdings reported a strong financial performance for the second quarter of 2025, surpassing earnings expectations. The company announced an earnings per share (EPS) of $1.45, which exceeded the forecasted $1.23, marking a 17.89% surprise. However, revenue slightly missed expectations, coming in at $1.2 billion compared to the anticipated $1.21 billion. Additionally, OneMain Holdings’ subsidiary, OneMain Finance Corporation, issued $750 million in 6.125% senior notes due in 2030. These notes are senior unsecured obligations and will mature on May 15, 2030, with interest paid semiannually. Furthermore, JMP analyst David Scharf reiterated a Market Outperform rating for OneMain Holdings, maintaining a price target of $65.00. This rating follows the company’s positive second-quarter results, which were driven by credit outperformance. These developments highlight the company’s recent activities in the financial market.
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