UWM Holdings Corporation (NYSE:UWMC) is considered one of the best fundamentally strong penny stocks to buy by analysts. Jefferies recently initiated coverage with a Hold rating and a price target of $5, showing a potential 3% upside. The global investment bank highlighted the company’s structural positioning and high operating leverage in the upcoming mortgage cycle.

Jefferies mentioned UWM’s long-term prospects, including AI-powered systems, cost efficiencies by 2027, and broker channel expansion. Despite positive factors, the firm noted that the stock price already reflects much of the medium-term recovery narrative for the mortgage market. Keefe Bruyette raised the price target to $6.75, while Morgan Stanley lowered it to $6, both maintaining their ratings.

UWM Holdings Corporation, founded in 1986, specializes in residential mortgage lending in Michigan. While the company shows investment potential, other AI stocks may offer greater upside with less downside risk. For those seeking undervalued AI stocks with potential benefits from current economic trends, explore our free report on the best short-term AI stock.

Read more at Yahoo Finance: Jefferies Sees Structural Strength but Limited Upside for UWM Holdings Corporation (UWMC)