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UPDATE: Morgan Stanley Reiterates On PHH On Revised Operating Estimates

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Compass Point Believes 'Normalized' Is Still 2 Years Out For PHH
UPDATE: Keefe, Bruyette & Woods Upgrades PHH Corporation

In a report published Thursday, Morgan Stanley analyst Cheryl M. Pate reiterated an Equal-Weight rating on PHH (NYSE: PHH), and raised the price target from $24.00 to $26.00.

In the report, Morgan Stanley noted, “Following the completed Fleet sale, we revise our operating estimates higher on (1) a more aggressive pace of capital return from greater than expected buybacks, and (2) clarity on the path to enhance profitability in the mortgage business. While execution remains a risk and profitability levels in mortgage are likely to remain challenged in the near-term, we are increasing our price target by $2 to $26 given capital leverage from higher buybacks as well as increased comfort with PHH's move to re-orient the business. We expect the stock will re-rate higher over time as PHH executes on improving profitability, but normalized earnings are 2-3 years out.”

PHH closed on Wednesday at $22.67.

Latest Ratings for PHH

DateFirmActionFromTo
Feb 2015Keefe Bruyette & WoodsDowngradesOutperformMarket Perform
Nov 2014Compass PointReiteratesNeutral
Oct 2014Keefe Bruyette & WoodsUpgradesMarket PerformOutperform

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Posted-In: Cheryl M. Pate Morgan StanleyAnalyst Color Price Target Analyst Ratings

 

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