Update shared on19 Aug 2025
Fair value Increased 6.10%Analysts remain cautious on loanDepot due to structural liquidity and operational challenges amid sector headwinds, though modest improvements in future profitability have led to a slight increase in the price target from $1.37 to $1.45.
Analyst Commentary
- LoanDepot faces structural challenges in sourcing liquidity and reducing expenses compared to larger peers, potentially limiting its competitiveness.
- Analysts highlight difficulty in recalibrating operations in response to volatile interest rates, raising concerns over flexibility.
- Bullish analysts acknowledge modest improvements in future gain on sale revenue, modestly raising long-term EPS estimates.
- Despite minor upward price target adjustments, forecasts for near-term revenue remain subdued, with operational expense reductions only partially mitigating weakness.
- The sector faces high rates and intense competition, continuing to pressure production volumes and profit margins, leading analysts to maintain largely neutral or cautious stances.
What's in the News
- loanDepot guided to third-quarter origination volume of $5.0–$7.0 billion, rate lock volume of $5.25–$7.25 billion, and gain on sale margin of 325–350 bps.
- Founder Anthony Hsieh was appointed permanent CEO, plans to expand the leadership team and focus on performance, innovation, and growth.
- loanDepot was added to numerous Russell indexes, including the 2000, 2500, 3000, and Microcap Value Indexes, as well as their associated value and completeness benchmarks.
Valuation Changes
Summary of Valuation Changes for loanDepot
- The Consensus Analyst Price Target has risen from $1.37 to $1.45.
- The Future P/E for loanDepot has significantly fallen from 17.53x to 11.75x.
- The Net Profit Margin for loanDepot remained effectively unchanged, at 2.48%.
Disclaimer
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