Compass Point Sees Attractive Entry Point for Walker & Dunlop

In a report published Thursday, Compass Point analyst Jason Stewart reiterated a Buy rating and $19.00 price target on

. In the report, Compass Point noted, “We reiterate our Buy rating and $19 price target on WD shares ahead of 3Q14 earnings. GSE multifamily lending volumes are accelerating and we expect WD's leading market position to translate into higher than expected 3Q14 originations and a substantial earnings per share (EPS) beat (earnings are typically released the first full week of November). Our 3Q14 EPS estimate stands at $0.38 versus the consensus of $0.32. WD shares have underperformed year-to-date (-13% versus +16% for the BKX) as GSE lending volumes were significantly lower in 1H14. However, we now believe increased GSE multifamily lending volume can bridge the gap between the current environment and the substantial wall of CMBS maturities in 2016. Additionally, trading at 1.1x BVPS or 103% of the 2Q14 MSR fair value, current valuation represents an attractive longer term entry point.” Walker & Dunlop closed on Wednesday at $14.18.