UWMC - UWM Holdings stock snags Overweight rating at Barclay on market share prospects

UWM Holdings (UWMC) gains 1.7% in premarket trading after Barclays Capital analyst Mark DeVries initiates the stock at Overweight due to its strong near-term earnings outlook, prospects for expanding its share in a growing channel, and attractive valuation.YTD, UWMC has declined 43%, leaving the stock at 6x 2022 EPS, DeVries points out.UWMC holds a 20%+ market share in the independent broker channel, which had been marginalized in the wake of the 2008 financial crisis."We expect the broker channel will continue to grow, as should UWMC's share of it, providing strong long-term growth prospects even as refi activity fades," the analyst writes.He adds: "The local lending presence provided by mortgage brokers gives UWMC a leg up on purchase originations, so we expect it will experience less earnings pressure than most peers when the refi wave end."UWMC made its public debut on Jan. 22 after merging with SPAC Gores Holdings IV.SA contributor Michael Allison

For further details see:

UWM Holdings stock snags Overweight rating at Barclay on market share prospects