03:51 PM EDT, 07/29/2024 (MT Newswires) -- OneMain Holdings ( OMF ) benefits from a "durable" business model with a potential for capital generation, RBC Capital Markets said Monday in a report.

"Nonprime personal loans is a large addressable market with potential for meaningful growth," and OneMain ( OMF ) aims to lead the industry, UBS said. The company's "capital generation model gives it ability to return meaningful amounts of excess capital through dividends and share buybacks," the report said.

RBC affirmed its forecast of $1.04 a share for Q2 adjusted earnings due Wednesday. The 2024 commercial and industrial adjusted EPS estimate was cut to $5.41 from $5.76, with the 2025 estimate reduced to $7.23 from $7.29 to reflect interest expense and net charge-off forecasts.

RBC maintained its outperform rating on OneMain Holdings ( OMF ) with a price target of $61.

Shares of OneMain Holdings ( OMF ) fell 1.8% in recent trading Monday.

Price: 52.14, Change: -0.95, Percent Change: -1.79