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UPDATE: Piper Jaffray Initiates Altisource Residential with Overweight on Low-Cost Integrated Model

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In a report published Monday, Piper Jaffray analyst Michael J. Grondahl initiated coverage on Altisource Residential Corp. (NYSE: RESI) with an Overweight rating and $24.00 price target.

In the report, Grondahl noted, “We believe RESI represents a unique and efficient low cost model to play the current housing dislocation as many non-performing loans (NPLs) get sold by large banks. RESI will purchase NPLs and outsource servicing to Ocwen Financial (OCN), with workout processing and repositioning outsourced to Altisource Portfolio Solutions (ASPS). By leveraging OCN and ASPS, RESI can establish a national business and not be limited to a geography or carry extensive infrastructure. RESI will ultimately own a portfolio of single family rental properties. In our view, RESI's low cost integrated model will position it for growth to generate an attractive and growing dividend.”

Altisource Residential Corp. closed on Friday at $18.68.

Latest Ratings for RESI

DateFirmActionFromTo
May 2015Deutsche BankMaintainsBuy
May 2015Compass PointInitiates Coverage onBuy
May 2015Keefe Bruyette & WoodsMaintainsMarket Perform

View More Analyst Ratings for RESI
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Posted-In: Piper JaffrayAnalyst Color Initiation Analyst Ratings

 

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