UPDATE: Oppenheimer Initiates Coverage on PHH Corporation with Perform Rating on Valuation

In a report published Tuesday, Oppenheimer analyst Ben Chittenden initiated coverage on

with a Perform rating. In the report, Oppenheimer noted, “We are initiating PHH at Perform. While there are many, many positives going for PHH, valuation starts us on the sidelines. Each of PHH's three main business lines faces transitory issues that over the medium term should give way to a nice earnings ramp. In addition, PHH stands to benefit from the same secular tailwinds we discuss in our industry report, A Changing Mortgage Market, also published today. In this report, we discuss PHH's background, its business segments, our model, some of the key differentiators and our investment thesis.” PHH Corporation closed on Monday at $21.10.