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BofA Securities Double Downgrades LoanDepot Inc (LDI) to Underperform

StreetInsider.com
 2021-07-31

BofA Securities analyst Derek Hewett downgraded LoanDepot Inc (NYSE: LDI) from Buy to Underperform with a price target of $13.00 (from $21.00). The analyst comments "We downgrade loanDepot (LDI) to Underperform from Buy given our more cautious outlook on the mortgage origination sector. We think higher interest rates and increased competition should continue to pressure origination volumes and margins, driving lower returns for the foreseeable future. Specifically, industry production volume should decline due to lower refinance volume. Also, in our view, a price war in the wholesale channel, which is shrinking wholesale margins, could expand to the retail channel as two large mortgage originators implement aggressive growth initiatives to gain market share."

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