UPDATE: Bank of America Merrill Lynch Reiterates Buy Rating, Raises PO on Ocwen Financial Corporation
In a report published Monday, Bank of America Merrill Lynch reiterated its Buy rating on Ocwen Financial Corporation (NYSE: OCN), and raised its price objective from $25.00 to $32.00.
Bank of America Merrill Lynch noted,“We remain constructive on Ocwen Financial, despite the 45% gains achieved in Q3'12, as there are a number of catalysts that we believe are likely to support a favorable EPS growth outlook and bolster sentiment for the stock. Specifically, we anticipate a meaningful reduction in OCN's tax rate to drive a positive estimate revision cycle in the near-term. On a longer-term basis, we think OCN will be revalued higher in anticipation of the transformation to a more ‘capital-light' servicing model that will untether capital to support accelerated servicing portfolio growth or a buyback, which would further support a prolonged earnings growth outlook. The stock will likely prove more sensitive to headline issues, as it could be prone to profit-taking on negative news. However, we think investors will be rewarded, as visibility into the secular opportunity in non-bank servicing develops. Reiterate Buy rating.”
Ocwen Financial Corporation closed on Friday at $27.41.
Latest Ratings for OCN
|Nov 2014||Keefe Bruyette & Woods||Maintains||Market Perform|
|Nov 2014||Bank of America||Maintains||Neutral|
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