UPDATE: Sterne Agee Reiterates Buy on PHH Corporation on Plan to Pay Off Debt

In a report published Monday, Sterne Agee analyst Henry J. Coffey Jr. reiterated a Buy rating and $26.00 price target on PHH Corporation PHH.

In the report, Sterne Agee noted, “Paying off/refinancing all of PHH's existing corporate debt would reduce leverage, add an estimated $0.60-$0.65 per share to operating (basic) EPS, open the door to buy-backs and paying a dividend, and in our view, lift the shares to above the new, estimated per share tangible book value of $24-$25.”

PHH Corporation closed on Friday at $20.86.