PennyMac Financial Services Inc. saw a significant price increase of 6.45%, reaching a 52-week high. This surge comes amid positive market conditions, with the Nasdaq-100 up 0.94% and the S&P 500 up 0.70%.
The stock's rise is attributed to a positive market reaction following President Trump's directive to purchase $200 billion in mortgage bonds, which is expected to lower mortgage rates and enhance affordability for homebuyers. This initiative has led to increased optimism among mortgage lender stocks, including PennyMac, as analysts predict a potential drop in 30-year fixed mortgage rates from 6.2% to 5%.
This development indicates a favorable environment for PennyMac Financial Services, as lower mortgage rates could stimulate demand in the housing market, benefiting the company's operations and overall market position.
Wall Street analysts forecast PFSI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PFSI is 150.29 USD with a low forecast of 143.00 USD and a high forecast of 160.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
Wall Street analysts forecast PFSI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PFSI is 150.29 USD with a low forecast of 143.00 USD and a high forecast of 160.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Buy
2 Hold
0 Sell
Moderate Buy
Current: 146.980
Low
143.00
Averages
150.29
High
160.00
Current: 146.980
Low
143.00
Averages
150.29
High
160.00
Jefferies
Jefferies
Buy
maintain
2026-01-09
Reason
Jefferies
Jefferies
Price Target
AI Analysis
2026-01-09
maintain
Buy
Reason
Jefferies notes 30-year mortgage rates fell 22 basis points points today to 5.99% following President Trump's post about a $200B GSE MBS purchase program, adding that the firm estimates that a 22 point decline in the 30-year fixed mortgage rate has historically been associated with roughly a 15%-25% increase in refinance activity. However, based on the firm's estimates of the incremental earnings impact from today's rate move alone, the current stock price reactions for mortgage stocks such as Rocket Companies (RKT), UWM Holdings (UWMC) and PennyMac Financial (PFSI) "appear to price in either a larger or more persistent policy shift than currently specified, or some probability of a broader regime of housing support over time," the analyst tells investors. Jefferies has Buy ratings on Rocket and PennyMac and a Hold rating on United Wholesale.
Barclays
Terry Ma
Overweight
maintain
$139 -> $158
2026-01-06
Reason
Barclays
Terry Ma
Price Target
$139 -> $158
2026-01-06
maintain
Overweight
Reason
Barclays analyst Terry Ma raised the firm's price target on PennyMac Financial to $158 from $139 and keeps an Overweight rating on the shares. The firm sees additional upside in select consumer finance name in 2026. A "benign' credit environment sets the stage for loan growth, the analyst tells investors in a research note. Barclays also forecasts a better mortgage origination market in 2026. The firm adjusted price targets as part of its 2026 outlook.
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BTIG
Eric Hagen
Buy
maintain
$135 -> $150
2025-12-29
Reason
BTIG
Eric Hagen
Price Target
$135 -> $150
2025-12-29
maintain
Buy
Reason
BTIG analyst Eric Hagen raised the firm's price target on PennyMac Financial to $150 from $135 and keeps a Buy rating on the shares. Most mortgage lenders and servicers should expect earnings upside from "low(er)" interest rate volatility, argues the analyst, who sees improved visibility for GAAP book value to get up near $100 per share by the end of 2026 if low interest rate volatility helps contribute to more moderate and predictable hedging costs.
UBS
Doug Harter
Neutral
maintain
$135 -> $145
2025-10-24
Reason
UBS
Doug Harter
Price Target
$135 -> $145
2025-10-24
maintain
Neutral
Reason
UBS analyst Doug Harter raised the firm's price target on PennyMac Financial to $145 from $135 and keeps a Neutral rating on the shares.
About PFSI
PennyMac Financial Services, Inc. is a specialty financial services company, which is focused on the production and servicing of the United States mortgage loans and the management of investments related to the United States mortgage market. The Company operates through two segments: production and servicing. The production segment performs loan origination, acquisition and sale activities for its account, as well as for PennyMac Mortgage Investment Trust (PMT). Its loan production segment sources new prime credit quality residential conventional and government-insured or guaranteed mortgage loans through three channels: correspondent production, broker direct lending and consumer direct lending. The servicing segment performs loan servicing for both newly originated loans it is holding for sale and loans its services for others, including for PMT. Its loan servicing segment performs loan administration, collection, and default management activities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
