NEWT Stock Forecast & Price Target

NewtekOne Inc has demonstrated robust financial growth, with net GOS fees increasing 13.8% quarter-over-quarter to $25.7 million in Q3, showcasing a favorable revenue outlook with projections of $92.5 million in 2024 and $99.4 million in 2025. The company has effectively increased its commercial business deposits to $235 million, accounting for 36% of total deposits, which aligns with its strategy to capture core operating accounts from small business customers. Additionally, NewtekOne reported significant improvements in its financial metrics, including a pre-tax return on assets of 5.64%, a tangible common equity to total assets ratio increase from 13.6% to 13.8%, and a 13% rise in tangible book value per share to $11.07, reflecting its strong operational performance and growth potential.

NewtekOne Inc faces substantial challenges due to a difficult banking sector environment, with net interest income pressures adversely affecting earnings per share (EPS) estimates, particularly following the March banking crisis. Key risks include a potential slowdown in small business growth, credit deterioration in loan portfolios, and heightened interest rate volatility, all of which could hinder the company’s earnings outlook and diminish investor sentiment. Additionally, lowered deposit growth assumptions and the potential loss of Preferred Lender Program (PLP) status could negatively impact NewtekOne's ability to access capital markets, further constraining growth and contributing to a bearish outlook on its stock.