In a report published Monday, Citigroup analyst Donald Fandetti reiterated a Buy rating on Home Loan Servicing Solutions HLSS, and raised the price target from $24.00 to $27.00.
In the report, Citigroup noted, “HLSS reported Q2 EPS of $0.48, beating our and cons estimates of $0.46. Earnings benefited from 2c of lower-than-expected amortization resulting from the 12.5% CPR vs. their 13.5% projection. Book value of $17.23 was up 8.6% q/q, mostly on the accretive equity offering in June. The company declared a $0.15 dividend for July/Aug/Sept (+1c/month), for a Q3'13 dividend of $0.45 (7.2% yield on the current share price). Q3'13 EPS guidance of 48-49c was provided on the call. We are raising our target to $27, from $24, on better earnings/dividend outlook.”
Home Loan Servicing Solutions closed on Friday at $24.96.
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