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Keefe Bruyette downgrades FAF, PFSI and STC on valuation concern

|About: First American Financial... (FAF)|By: , SA News Editor

Keefe Bruyette analyst downgrades First American Financial (NYSE:FAF) and PennyMac Financial Services (NYSE:PFSI) to market perform from outperform, while downgraded Stewart Information Services (NYSE:STC) to underperform from market perform.

PT for  FAF, PFSI and STC has been set at $69, $36, and $38, respectively.

As refinance volumes topped earlier expectations in second of 2019, and assuming mortgage spreads hold fairly constant, analyst Bose George expects refinance volumes in 2020 to perform below expectations.

FAF Quant rating Very Bullish; Sell side rating Bullish

PFSI Quant rating Neutral; Sell side rating Bullish

STC Quant rating Neutral; Sell side rating Neutral

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