In a report published Monday, Credit Suisse analyst Douglas Harter reinstated coverage on PennyMac Mortgage Investment Trust PMT with an Outperform rating and $27.00 price target.
In the report, Credit Suisse noted, “We are reinstating coverage of PMT with an Outperform following the completion of PFSI IPO and the recent convertible offering. PMT is an attractive way to play the continued recovery in the housing market and growth in mortgage market share for PennyMac. This combination should result in an attractive yield (10.5%) plus capital appreciation. We are raising our 2013 EPS to $3.41 (from $3.15) to reflect better-than-expected first quarter earnings and a continued strong contribution from the distressed lending. We are lowering our 2014 and 2015 estimates to $3.30 (from $3.40) and $3.35 (from $3.45) to reflect lower GOS revenues. Our forward estimates assume that the level of gains moderate from the first quarter's levels. Given continued home price appreciation, we see potential for further near-term upside to estimates.”
PennyMac Mortgage Investment Trust closed on Friday at $21.80.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.