PennyMac Taps AWS for AI Platform as BTIG Cuts Targets 30%
PFSI•BTIG maintained a Buy rating on PennyMac Financial while reducing industry price targets by roughly 30% and forecasting $2.1 trillion in yearly mortgage originations for 2026 and 2027. PennyMac also expanded its strategic agreement with AWS to deploy enterprise-grade AI across its servicing platform and commercialize its technology.
1. BTIG Maintains Buy Rating with Lowered Targets
BTIG reaffirmed a Buy rating on PennyMac Financial alongside other mortgage lenders while cutting average price targets by roughly 30% to reflect a tougher interest-rate outlook. The brokerage expects total U.S. mortgage originations of about $2.1 trillion in both 2026 and 2027, citing resilient application volumes that could support earnings recovery once rates stabilize.
2. PennyMac Expands AI with AWS Partnership
PennyMac selected AWS as its preferred cloud provider under an expanded strategic agreement aimed at deploying enterprise-grade AI tools across its servicing platform. The partnership is designed to commercialize the company’s technology investments, improve operating efficiency, and drive margin gains through enhanced automation.
