Jefferies upgraded shares of UWM Holdings Corp (NYSE:) to Buy from Hold, raising the price target to $7 from $5.50 per share in a note on Friday.
Analysts told investors they were upgrading the stock as market share momentum began to slip.
“UWMC accelerated market share gains through its ‘game on’ pricing strategy,” the analysts wrote. “So many competitors have left the wholesale channel.”
“We view the N/T change in UWMC’s ‘game on’ pricing initiative as an opportune time to establish a position in the title,” they added.
Analysts concluded that the market share retention shows the value of UWMC’s platform, while near-term forecasts suggest GOS margins will converge to long-term averages.
“Stiffness in market share gains while increasing GOS margins should improve UWMC’s future EPS profile,” the analysts said.