UPDATE: Jefferies Initiates Coverage on PennyMac Financial Services with Hold Rating, $23 PT on Fair Valuation

In a report published Friday, Jefferies analyst Daniel Furtado initiated coverage on

with a Hold rating and $23.00 price target. In the report, Jefferies noted, “We are initiating on shares of PFSI, a non-bank servicer/originator and investment manager, with a Hold rating. While we expect PFSI to continue to take market share, we see near-term headwinds as refinance volumes slow and margins compress pressuring earnings and valuation in the near term. Our $23 PT is 8x our FY'14 EPS estimate of $2.86.” PennyMac Financial Services closed on Thursday at $21.03.