Bank of America Merrill Lynch Reiterates Buy Rating, $20.50 PT on Home Loan Servicing Solutions
In a report published Monday, Bank of America Merrill Lynch reiterated its Buy rating and $20.50 price target on Home Loan Servicing Solutions Ltd. (NASDAQ: HLSS).
BofA Merrill Lynch noted, “Home Loan Servicing Solutions recently issued 25M shares of common equity to purchase $34B in unpaid balances of MSR-related assets from Ocwen Financial. The deal was received well by investors with HLSS up 4.5% after the announcement. The transaction further highlights the benefits of the close relationship between HLSS and Ocwen Financial, which allows HLSS to lift MSR assets out of Ocwen to generate stable earnings for HLSS shareholders. The equity raise will likely be accretive to BV at $19 and we estimate pro-forma BV of $15.80 compared to the Q3'12 BV of $13.67. Maintain Buy rating.”
Home Loan Servicing Solutions Ltd. closed on Friday at $19.09.
Latest Ratings for HLSS
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.