UPDATE: Sterne Agee Reiterates Buy Rating, Raises PT for Nationstar Mortgage Holdings
In a company report published earlier today, Sterne Agee Group, Inc. reiterated its Buy rating for Nationstar Mortgage Holdings Inc. (NYSE: NSM), and raised its price target from $20.00 to $25.00.
Sterne Agee went on to say “Our focus at this point is on what NSM is likely to achieve with ResCap. A valuation of 6.0x expected EPS of $4.00 to $4.50 suggest a value for the shares of $24 to $27 per share. Our more analytical model looks at the EPS contribution of the component parts (assuming the current bid) and values the shares at ~$28 and, assuming the max bid places a value on the shares of ~ $26. These values, combined are sufficient to warrant a price target of $25.”
Nationstar Mortgage Holdings Inc. closed yesterday at $19.62.
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