Flagstar Bank's updated outlook puts full realization of its long-term objectives in 2028, while Morgan Stanley says higher rates have pushed the lender's turnaround behind its expectations.
The bank now projects diluted adjusted earnings per share of $0.85 to $0.95 for 2027. Its previous forecast range was $1.60 to $1.70.
On Nov. 4, Morgan Stanley set a $12 target for Flagstar, down $3 from its previous target, and cut its rating to Underweight from Overweight. The firm said higher rates had slowed the bank’s progress more than it anticipated.
