UPDATE: Sterne Agee Downgrades Walter Investment Management to Neutral on Pending OCC Settlement
Sterne Agee reduced its rating on Walter Investment Management (NYSE: WAC) from Buy to Neutral and lowered its price target from $47 to $44.
Sterne Agee said, "The prospect that the pending/potential OCC settlement with 16 major institutions could delay servicing transfers (like it did last year) is something worth factoring into our price target. … We are reducing our price target from $47 to $44 to reflect the potential delay in what is expected to be $60+ billion in new servicing wins currently in WAC's exclusive pipeline. These transfers were included in our price target, but not our EPS estimates. With the shares within 5% of this target we are reducing our rating from BUY to NEUTRAL."
Walter Investment Management closed at $42.21 on Thursday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.