Morgan Stanley Believes Nationstar Mortgage Will Have Ample Funding For Future Deals

In a report published Friday, Morgan Stanley analyst Cheryl M. Pate reiterated an Equal-Weight rating and $30.00 price target on

. In the report, Morgan Stanley noted, "We lower our 2015e and 2016e EPS by 40c and 50c, respectively, to $2.80 and $3.33 on dilution from the recent equity raise. Assuming the 17.5m plus the 2.625m shoe, share count increases by roughly 22%. Full year run rate benefits in the $30m range from the recently announced deals partially offset the share dilution. We expect NSM will likely have the opportunity to utilize the remaining dry powder from the raise over the next few quarters to continue driving servicing portfolio growth,and we now look for a 25% y/y increase in 2015 to $476B, based on announced deals,and an expectation for another $30B per quarter in 2H15." Nationstar Mortgage closed on Thursday at $25.83.