UPDATE: Oppenheimer Initiates Coverage on Nationstar Mortgage on Multiple Positive Factors

In a report published Tuesday, Oppenheimer analyst Ben Chittenden initiated coverage on

with an Outperform rating and $62.00 price target. In the report, Oppenheimer noted, “NSM has been meticulously built from scratch to take advantage of the secular shift underway in the mortgage servicing/originations space. Of the four companies that we are initiating on today, NSM is the only one pulling all the levers we outline in our industry report. NSM is growing its servicing book and has a $455B+ pipeline of bulk and flow potential. The company is growing while targeting both operating efficiencies (reduction in cost per loan) and financing efficiencies (securitized advances, etc.). In addition, NSM is the second-largest originations platform and is increasing its served channels. Finally, its SolutionStar unit offers NSM higher margin, fee-based earnings.” Nationstar Mortgage Holdings closed on Monday at $52.57.