jpmorgan chase analysts on tuesday cut their ratings on three consumer finance companies after federal reserve chairman jerome powell signaled the central bank’s determination to continue hiking interest rates jpmorgan analysts said powell’s hawkish comments at jackson hole prompted them to update their valuations and ratings across the consumer finance space “while we continue to believe that a downturn will be mild it is clear that the fed will require a ‘higher burden of proof’ before reversing policy” jpmorgan analysts said “as a result the risk of ‘overshooting’ its quantitative tightening qt has increased” jpmorgan said it’s not “materially” changing its earnings outlook for most names in the sector rather it sees increased risk through lower stock price multiples for credit cards companies serving the underbanked auto finance providers student lending and private mortgage insurance mortgage originators however may face more stress on profits “expectation that mortgage rates will be ‘higher for longer’ further dampens origination outlook and may exacerbate competitive pressures” jpmorgan analysts said against this backdrop jpmorgan kept its overweight rating on guild holdings co ghld and its underweight view on home point capital inc hmpt  but reduced its rating on rocket companies inc rkt to neutral from overweight “while we continue to view rkt as a longterm winner in the mortgage sector we believe the company’s size and scale along with a higher contribution from refinance volume create incremental challenges in a scenario where mortgage rates remain higher for longer” analysts said shares of rocket mortgage fell 07 in premarket trades on tuesday the stock is down 456 in 2022 compared with a 177 drop by the sp 500 spx  jpmorgan cut its rating on discover financial services dfs to neutral from overweight partly because a pullback across the space creates more attractive relative opportunities such as overweightrated capital one financial corp cof  while discover financial’s credit quality and loan growth are in stable shape an internal compliance matters investigation it disclosed in july around its student loan servicing business “may limit opportunity for meaningful multiple expansion and relative outperformance” analysts said shares of discover financial dipped 01 in premarket trades the stock is down nearly 14 in 2022 outperforming the 177 loss by the sp 500 also on the credit card front jpmorgan reiterated neutral ratings on american express co axp and synchrony financial syf  among private mortgage insurers jpmorgan cut its rating on enact holdings inc act to neutral from overweight analysts said other companies in the space such as overweightrated essent group ltd esnt and nmih remain more attractive “thematically we remain constructive on enact holdings” analysts said “however relative multiple to peers and broader sector likely limits relative return opportunity would look for entry point at lower levels” shares of enact holdings are up 20 so far in 2022 compared with a loss of 177 by the sp 500 and a drop of 257 by the nasdaq comp  jpmorgan reiterated its ratings on several consumer finance companies in its stock universe it kept neutral ratings on synchrony financial syf  ally financial inc ally and slm corp sallie mae slm  it continues to rate as overweight onemain holdings omf  oportun financial corp oprt  essent group ltd esnt and nmi holdings inc nmih  it’s underweight on navient corp navi  also read the us is on track for a soft landing goldman sachs chief economist says