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UPDATE: Compass Point Initiates Coverage on Ocwen Financial with Buy Rating, $33 PT

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In a report published Wednesday, Compass Point Research & Trading initiated coverage on Ocwen Financial Corporation (NYSE: OCN) with a Buy rating and $33.00 price target.

Compass Point noted, “Although these names have had a huge run lately and valuations have been stretched, the longer-term opportunity for the special servicers outweighs the near term volatility that may occur. Each of these names will likely participate in the secular shift away from the traditional servicing model, because (1) there is still a massive backlog of distressed mortgages that need to be cleared, (2) Basel III will limit banks ability to justify keeping large servicing portfolios, and (3) regulatory compliance has become costly and creates operational risk. Ultimately, we believe the residential mortgage servicers present a rare growth story within financials and should continue to show strong returns even though there has been significant recent outperformance in the stocks.”

Ocwen Financial Corporation closed on Tuesday at $27.37.

Latest Ratings for OCN

DateFirmActionFromTo
Jul 2015Sterne Agee CRTDowngradesBuyNeutral
Jul 2015Bank of AmericaDowngradesNeutralUnderperform
May 2015CitigroupMaintainsNeutral

View More Analyst Ratings for OCN
View the Latest Analyst Ratings

Posted-In: Compass Point Research & TradingAnalyst Color Initiation Analyst Ratings

 

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