Sterne Agee Maintains Buy, $24 Target on PHH

Sterne Agee reiterates its Buy rating and $24 target price on PHH

as it lowers estimates to reflect focus on cash generation. Sterne Agee comments, "The crux of S&P's downgrade of the company notes to BB- is tied to the company's ability to raise the required liquidity to pay off $423 million in term notes due in 2013. ... We think a high-yield debt offering and lengthening of current line of credit maturities could cover any shortfall in both years." PHH closed at $11.11 per share on Thursday.