
COOP Stock Forecast & Price Target
COOP Analyst Ratings
Bulls say
Mr. Cooper Group Inc. has demonstrated strong performance in its Direct-to-Consumer (DTC) channel, reporting a significant increase in volumes, which rose 13% quarter-over-quarter (Q/Q) and 117% year-over-year (Y/Y), as well as a substantial uptick in total originations funded, which reached $9.3 billion in the fourth quarter, up 36% Q/Q. The company has effectively expanded its servicing portfolio to $1,556 billion, a 57% increase Y/Y, largely attributable to the integration of Flagstar's assets and clients, indicating a proactive growth strategy. Furthermore, management's updated guidance projects a robust return on equity (ROE) in the range of 16-20% for 2025 and 2026, underpinned by initiatives to reduce servicing costs through technological advancements, an aggressive push in the origination market, and an increase in fee revenues from new subservicing clients.
Bears say
Mr. Cooper Group Inc. has experienced a significant decline in its gain-on-sale origination margins, decreasing from 1.68% to 1.19%, which has negatively impacted the strength of origination volume growth, and margins are expected to stabilize at this lower level. Furthermore, the company's refinancing recapture rate plummeted to 35%, down from 69% sequentially, highlighting challenges in its origination segment amid competitive pressures and acquisition impacts. Additionally, the company's forward margin estimates have been adjusted downwards, anticipating consistent declines in ROE due to a shift in mix towards lower-margin correspondent channels, indicating potential volatility in profitability going forward.
This aggregate rating is based on analysts' research of Mr. Cooper Group Inc and is not a guaranteed prediction by Public.com or investment advice.
COOP Analyst Forecast & Price Prediction
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