United finance in the latest sector note

In the latest sector note, United Finance is flagged as an outperformer among mid-cap financial stocks, with a forecasted price target of $30 by Q3 based on rising net interest income and cost efficiency improvements. Maintenance expenses, which represent 25% of total operating costs, increased by 12.8% year over year. For the second half of 2024, the company expects maintenance expenses to rise by $40 million compared to the first half, averaging around $200 million per quarter in 2025. Moreover, labor costs, including salaries and benefits, rose by 9% year over year. This change appears to be due to a formalising of intercompany balances owed to Red Football Ltd and a subsidiary by RFJVL, a move which converted those balances into interest-bearing intra-group loans in December 2023, shortly before Ratcliffe’s minority investment was agreed. Technical charts for United Finance indicate a bullish EMA crossover on the daily timeframe, with RSI currently at 62 — signaling room for further upward momentum before overbought conditions set in.