UPDATE: Keefe, Bruyette & Woods Downgrades Home Loan Servicing Solutions Ltd to Market Perform, Reiterates $18 PT on Valuation

In a report published Friday, Keefe, Bruyette & Woods analyst Bose George downgraded the rating on

from Outperform to Market Perform, but reiterated the $18.00 price target. In the report, Keefe, Bruyette & Woods noted, "We are downgrading HLSS to Market Perform from Outperform based on valuation since the shares are trading at 96% of book value. We are also reducing our 2015/2016 EPS estimates to incorporate an increase in funding costs and lower advance rates. We maintain our $18 price target." Home Loan Servicing Solutions Ltd closed on Thursday at $17.22.