Morgan Stanley Upgrades UWM Holdings (UWMC) Rating, Raises PT

UWM Holdings Corporation (NYSE:UWMC) is one of the 11 Best US Stocks to Invest in Under $5. On April 7, Morgan Stanley analysts upgraded the firm’s rating on UWM Holdings Corporation (NYSE:UWMC) from “Equal Weight” to “Overweight” and raised the price target from $6 to $6.50.

The analysts pointed out that when the 10-year Treasury yield dropped below 4% and the 30-year fixed-rate mortgage rate hit 6% in August and September of 2024, refinancing activity in the US more than doubled in the second half of 2024 to reach about $260 billion. With the 10-year yield currently at or just under 4%, Morgan Stanley expects another surge in refinancing volumes.

Morgan Stanley Upgrades UWM Holdings (UWMC) Rating, Raises PT

A woman examining her finances and a mortgage payment plan on her laptop.

As a result, the firm has increased its forecast for total US mortgage and originations in 2025 and 2026 by 3% and 4%. Morgan Stanley now expects $2.03 trillion in 2025 and $2.33 trillion in 2026. Refinancing volumes are also expected to rise by 12% and 13%, reaching $611 billion in 2025 and $770 billion in 2026.

UWM Holdings Corporation (NYSE:UWMC) mainly focuses on purchase-oriented business and the mortgage broker market. However, the company is making strategic moves to grow its share of the refinancing market. Morgan Stanley believes UWM Holdings Corporation (NYSE:UWMC) can continue to gain market share in refinancing against the backdrop of rising refinancing activity.

Because of these trends, Morgan Stanley raised its 2026 earnings per share estimate for UWM Holdings Corporation (NYSE:UWMC) by 12% to 58 cents.

UWM Holdings Corporation (NYSE:UWMC) is the largest wholesale mortgage lender in the US.

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