UPDATE: Deutsche Bank Initiates Home Loan Servicing with Hold, $14 Target Price

Deutsche Bank initiates its coverage on Home Loan Servicing HLSS with a Hold rating and a price target of $14 as short term upside is dividend-dependent. Deutsche Bank comments, "We expect HLSS to post stable earnings and attractive dividends; however, given likely future capital raises to finance portfolio growth, we believe dividends are likely to drive the majority of returns from current levels. Therefore, we rate shares a Hold. Longer-term, we believe the portfolio benefits from a natural hedge against increasing rates, which is likely to make HLSS more attractive relative to peers as short-term rates increase." HLSS closed at $13.94 on Friday.