Update shared on13 Oct 2025
Fair value Decreased 1.53%OneMain Holdings' analyst price target has been revised downward from $65.21 to $64.21 per share. This change reflects analysts' concerns over consumer credit headwinds, despite improved lending models and recent performance updates.
Analyst Commentary
Analyst perspectives on OneMain Holdings reflect a mix of optimism about the company's operational adjustments and caution regarding macroeconomic headwinds. The following summarizes key bullish and bearish takeaways from recent research updates.
Bullish Takeaways- Bullish analysts have recognized improved credit performance, with recent data showing credit trends are better than previously expected.
- The company's updated lending model now incorporates inflation effects. This demonstrates proactive risk management and adaptability to changing economic conditions.
- Some analysts have raised their price targets, reflecting confidence in management's execution and a positive outlook following recent lending performance updates.
- Reduction in the 2022 "problematic" loan vintages points to effective underwriting adjustments and disciplined risk management.
- Bearish analysts caution that balance sheets for low-income consumers are deteriorating, creating incremental credit risk for the company.
- Early-stage delinquencies have increased month over month and are tracking above seasonal norms, with a notable rise in specific loan categories.
- Despite operational improvements, some analysts believe incremental consumer credit headwinds could limit near-term upside in valuation.
- Concerns persist about the sustainability of recent credit improvements if economic pressures on key borrower segments continue to mount.
What's in the News
- From April 1, 2025 to June 30, 2025, OneMain Holdings repurchased 459,597 shares for $21.14 million. This completed the buyback of 9,822,294 shares, or 7.96% of the company, for $411.35 million under the February 2022 program (Key Developments).
- OneMain Holdings raised its full-year 2025 guidance and now expects total revenue growth at the high end of the previously forecasted 6% to 8% range. The company cited strong early-year revenue and net charge-off performance (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has decreased modestly from $65.21 to $64.21 per share.
- Discount Rate remains unchanged at 12.32%.
- Revenue Growth estimate has fallen slightly, now projected at 34.48% compared to the previous 34.91% figure.
- Net Profit Margin forecast has declined from 19.34% to 17.99%.
- Future P/E ratio has increased from 8.25x to 8.82x, indicating a higher valuation on expected earnings.
Disclaimer
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