UPDATE: Deutsche Bank Reiterates Hold Rating, Raises PT on Home Loan Servicing Solutions

In a report published Wednesday, Deutsche Bank reiterated its Hold rating on Home Loan Servicing Solutions

, and raised its price target from $14.00 to $16.50. Deutsche Bank noted, “HLSS recently closed a secondary offering of 16.4 million shares, raising net proceeds of $236mm, which were used to purchase servicing assets related to $21.2bn in UPB from Ocwen. The purchase price of $793mm was financed by $202mm in cash and $591mm in borrowings under a servicing advance financing facility. Given an increase to our multiple and the transaction being accretive to BV, we are increasing our target to $16.50 per share. For 2013, we are increasing earnings and dividend per share estimates to $1.39 and $1.32 from $1.31 and $1.20, respectively.” Home Loan Servicing Solutions closed on Tuesday at $16.02.