Market Overview

UPDATE: Deutsche Bank Upgrades Home Loan Servicing to Buy on Dividend Increase

Related HLSS
BoA Initiates Coverage On New Residential And Sees 20% Upside
Top 4 NASDAQ Stocks In The Mortgage Investment Industry With The Highest Operating Margin

Deutsche Bank raised its rating on Home Loan Servicing (NASDAQ: HLSS) from Hold to Buy with a reiterated $19.25 price target.

Deutsche Bank commented, "We are upgrading HLSS to a Buy from a Hold given the div increase (12c/mo from 11c/mo) and our expectation of stable ROEs. Prepayment speeds on subprime loans, which HLSS targets, are less sensitive to prepayments, and advances have virtually no credit risk since they are senior to AAA cash flows. We believe the recent pullback, caused by high yield stocks coming under pressure, has created an attractive buying opportunity for HLSS."

Home Loan Servicing closed at $17.67 on Thursday.

Latest Ratings for HLSS

Feb 2015BarclaysDowngradesOverweightEqual-weight
Feb 2015Piper JaffrayDowngradesOverweightNeutral
Feb 2015Deutsche BankDowngradesBuyHold

View More Analyst Ratings for HLSS
View the Latest Analyst Ratings

Posted-In: Deutsche BankAnalyst Color Upgrades Pre-Market Outlook Analyst Ratings


Related Articles (HLSS)

Get Benzinga's Newsletters