Overview
BofA Securities lowered its one-year price target on OneMain Financial Holdings (NYSE: OMF) to $74.00 from $75.00 but kept a Buy rating on the shares after the company's fourth-quarter results. The quarterly performance included an adjusted earnings-per-share beat that BofA attributed primarily to reduced provision expenses. According to the research note, the results reflected what analyst Mihir Bhatia described as "relatively consistent execution."
Analyst context and valuation
Across the analyst community, price targets for OneMain span from $63 to $90, with the consensus estimate pointing to about 22% potential upside from current market levels. OneMain is trading at a price-to-earnings ratio of 9.6 and shows a PEG ratio near 0.35, metrics that InvestingPro highlights as low relative to near-term earnings growth.
Guidance and portfolio trends
The company published initial guidance for 2026 that presents a mixed picture. Management expects solid loan growth, projecting receivables to expand in the 6-9% range, but the guidance does not signal an improvement in the consumer and industrial net charge-off rate despite prior credit-tightening actions the firm implemented. BofA characterized the credit guidance as "likely somewhat conservative," noting that the receivable growth outlook could help to ease worries about competitive pressure in the consumer finance sector.
Financial health and metrics
InvestingPro assigns OneMain a "GOOD" overall financial health score of 2.67, with especially strong marks for relative value and profitability. Those scores underscore why BofA maintained its Buy recommendation even with a modest reduction to the price target.
Recent results and market reaction
OneMain reported fourth-quarter 2025 adjusted earnings that exceeded analyst expectations, a performance the company attributed to solid revenue growth and an improved portfolio yield. The earnings release was announced on Thursday, and the company's stock showed no change in after-hours trading following the disclosure. The company and market updates did not include any additional analyst upgrades or downgrades in conjunction with the earnings report.
Implications
BofA's modest price-target reduction paired with an unchanged Buy rating signals continued confidence in OneMain's operational performance and near-term growth trajectory, while the mixed 2026 guidance leaves open key credit-related uncertainties. For investors tracking consumer finance and broader credit-sensitive sectors, OneMain's combination of inexpensive valuation metrics and stable profitability figures will likely remain focal points as the company executes on its receivable growth plans.
Note: The company ticker referenced in this report is OMF.