
ONIT Stock Forecast & Price Target
ONIT Analyst Ratings
Bulls say
Onity Group Inc. demonstrates a strong potential for stock price appreciation, supported by anticipated multiple expansion and growth in book value, particularly due to the expected reversal of the DTA valuation allowance, valued at $22 per share by year-end. The company's consumer direct segment showed significant momentum, with a sequential volume increase of 29%, reaching $384 million, while margins remained stable. Additionally, funded volume also reflected robust growth, increasing by 34% quarter-over-quarter to a total of $9.4 billion, indicating healthy operational performance.
Bears say
Onity Group's origination segment reported a modest decline in adjusted pre-tax income, falling to $9 million from $10 million quarter-over-quarter, indicating potential challenges in sustaining profitability. Meanwhile, the reverse mortgage volume has shown a consistent downward trend, decreasing by 6% quarter-over-quarter to $166 million, alongside a contraction in segment margins from 392 basis points to 367 basis points. Furthermore, future fiscal year estimates reflect a downward trend with projected revenues of $8.20, $9.74, and $11.34 for FY'25, FY'26, and FY'27, which suggests diminishing returns on equity over the upcoming years.
This aggregate rating is based on analysts' research of Onity Group Inc and is not a guaranteed prediction by Public.com or investment advice.
ONIT Analyst Forecast & Price Prediction
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