UPDATE: Credit Suisse Initiates Newcastle at Outperform

Credit Suisse initiates coverage on Newcastle Investment (NYSE: NCT) at an Overweight rating and a $7.50 price target.

Credit Suisse remarks, “We are initiating coverage of Newcastle with an Outperform rating and a $7.50 target price. The transition of the portfolio to excess servicing investments is driving higher returns and dividends for Newcastle. As dividends increase, we see price appreciation potential for the shares. This appreciation combined with the 12.7% (next-12 months) yield support our Outperform rating.”

Newcastle Investment closed at $7.16 on Monday.

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