BofA Starts Ocwen Financial With Buy Rating

In a note out today, Bank of America initiated coverage of Ocwen Financial

with a buy rating and a price objective of $16.50, implying substantial upside from where the shares currently trade. “As the largest subprime mortgage servicer, we believe OCN is well positioned to capitalize on significant cyclical and secular growth within the evolving loan servicing arena. We expect OCN to leverage its low-cost platform to gain share and drive significant earnings and BV growth, enhancing shareholder value. Investors should also benefit from improving sentiment, as servicing becomes a more mainstream investment sector along with visibility into the long-term structural opportunity improves,” BofA said in the note.