UPDATE: Morgan Stanley Reiterates Equal-Weight Rating, Raises PT on PHH Corporation on Multiple Value Drivers

In a report published Tuesday, Morgan Stanley analyst Cheryl M. Pate reiterated an Equal-Weight rating on

, and raised the price target from $23.00 to $24.00. In the report, Morgan Stanley noted, “We have updated our model and estimates for the announced fleet sale. Though the exact usage of excess cash remains uncertain, we assume PHH will employ a combination of alternatives. In our base case, we assume the remainder of the 2016 debt is repaid in 4Q14 (following the repayment of the 2014 notes in September) and PHH begins a buyback in 4Q14, in addition to supporting growth in the mortgage businesses. We increase our price target by $1 to $24, based on PHH's pro forma balance sheet.” PHH Corporation closed on Monday at $23.01.