BTIG raises target, keeps Buy
BTIG has lifted its 12-month price target on Onity Group, Inc. (NYSE:ONIT) to $60.00 from $50.00 and continues to carry a Buy rating on the stock. The updated target equates to about a 40% increase over Onity’s then-current share price of $43, with the company trading at a trailing price-to-earnings ratio of 11.92.
Drivers behind the revision
The research firm said the 20% upward revision in its target followed Onity Group’s recent earnings disclosure, which provided enough clarity on earnings to justify a release of the company’s valuation allowance. BTIG highlighted that the company is now profitable on a trailing basis, reporting diluted earnings per share of $3.61 over the last twelve months.
Analysts covering Onity expect EPS to reach $9.19 in fiscal 2025, according to available data cited by BTIG. Despite the brightened earnings outlook, BTIG noted that GAAP return on equity for the current year will be restrained - only in the low-double digits - as a consequence of the valuation allowance release.
M&A optionality and industry context
BTIG signaled that Onity’s streamlined operations and tighter leverage profile make the firm more compatible with merger-and-acquisition activity. The research house sees Onity as being in a position to play either side of M&A - potentially as an acquisition target or as an acquirer of another servicing platform or a tech-enabled vendor.
To contextualize consolidation dynamics and valuation benchmarks for scaled subservicers, BTIG referenced PennyMac Financial Services (NYSE:PFSI) and its acquisition of Cenlar for $257 million. The firm described the space as a "highly active and dynamic playing field," suggesting ongoing consolidation opportunities and valuation reference points for market participants.
Quarterly performance and remaining disclosure gaps
Onity reported a markedly strong Q4 2025 result, posting earnings per share of $14.24, well above consensus expectations that had been set at $2.50. That outcome represented a 469.6% positive surprise relative to the analyst forecast cited in the available information. The company’s revenue figures for the quarter were not included in the material reviewed by BTIG, and the report contains no indication of recent mergers or acquisitions involving Onity.
Additionally, analyst firms had not issued contemporaneous upgrades or downgrades to Onity’s stock in response to the results, according to the same information. BTIG’s reassessment and the outsized EPS print have drawn attention from investors and market watchers, but several important data points remain undisclosed in the public material reviewed.
Implication
BTIG’s price-target increase and continued Buy rating rest on improved earnings visibility, the release of a valuation allowance and the firm’s assessment that Onity’s balance sheet and operating posture create strategic optionality in a consolidating sector. The stock’s valuation and the company’s recent profit performance are central to the firm’s view.