Added to YB: 2026-05-26
Pitch date: 2026-03-17
FAF [bearish]
First American Financial Corporation
-3.26%
current return
Author Info
No bio for this author
Company Info
First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Home Warranty segments.
Market Cap
$6.9B
Pitch Price
$66.05
Price Target
52.00 (-23%)
Dividend
3.23%
EV/EBITDA
5.33
P/E
10.48
EV/Sales
0.96
Sector
Insurance
Category
value
First American Financial Corporation - $FAF (short)
FAF (short): 2nd largest US title insurer (23% share) faces AI disruption as LLMs can now access public records to generate title reports in ~1hr vs weeks at fraction of $3.5-4k cost. Fannie Mae pilot w/ Doma/Westcor waiving title on low-risk refi saves $500-1.5k. TX cut rates 15% since 7/25, FL/NM may follow. Zillow/Rocket vertical integration gaining share. Trading 10x 2026E vs MI peers at 6-8x; PT $52 (-21%) on multiple compression to 8x as AI threat materializes.
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