BTIG Starts LoanDepot Inc (LDI) at Neutral

BTIG analyst Eric Hagen initiates coverage on LoanDepot Inc (NYSE: LDI) with a Neutral rating.

The analyst comments "We're initiating coverage of loanDepot (LDI) with a Neutral rating... The company is a top-20 mortgage lender with $26 billion of trailing 12-month origination volume, and a current servicing portfolio of $118 billion. We think there's attractive brand recognition among consumers which can support more effective lead generation versus other retail lenders. At the same time, we see it having more limited room to source liquidity and cut expenses, which could restrict its competitiveness, and leave it challenged to properly calibrate operations when rates are volatile. During periods of volatile interest rates we've come to anticipate a deeper drawdown for LDI's valuation, which contributes to our Neutral rating. Our outlook is reinforced by the broader theme we see in the market right now, which is for the lenders possessing the most scale to generally remain in a stronger position to defend or take additional market share from smaller and more leveraged originators."

For an analyst ratings summary and ratings history on LoanDepot Inc click here. For more ratings news on LoanDepot Inc click here.

Shares of LoanDepot Inc closed at $1.97 yesterday.

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