Join        Login             Stock Quote

Home Loan Servicing Solutions (HLSS) Upgraded to 'Buy' by Deutsche Bank

 November 16, 2012 02:33 PM

(By Balachander) Home Loan Servicing Solutions Ltd. (NASDAQ: HLSS) shares were upgraded to "buy" from "hold" by Deutsche Bank, given the dividend increase and expectation of stable ROEs.

The bank, which has a price target of $19.25 on the stock, believes the recent pullback, caused by high yield stocks coming under pressure, has created an attractive buying opportunity for HLSS.

The company is engaged in acquiring mortgage servicing assets, primarily subprime and Alt-A mortgage servicing rights and associated servicing advances.

HLSS declared a monthly div of 12c for Nov and Dec, which is 1c increase from Oct. The increase occurred two months earlier than DB expected, the bank said.

While prepayment rates have increased from 3Q levels, DB said, the increase through the month of October was lower than management's expectations.

Given slower than expected Oct CPRs and management's updated 4Q guidance, DB increased its 4Q EPS estimate to 40c from 38c.

The stock, which has been trading in a 52-week range of $12.80 to $20.24, jumped 6.96 percent to trade at $18.90 on Friday.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageEmerging-Markets Stocks Took The Lead Last Week

Emerging-markets equities enjoyed a solid rise last week among the major asset classes, based on a set of read on...

article imageDoes Your Latest Investment Pass This Test?

On Wednesday, I sounded the alarm about the problems looming for some consumer staples stocks. In short, read on...

article imageIs The Slump In US Manufacturing Easing?

Yesterday’s November survey data from the Philadelphia Fed hints at the possibility that a stronger trend read on...

article imageMarket Potentially Facing Near Term Technical Headwinds

After the S&P 500 Index pullback on Thursday and Friday last week, the market's advance on Monday and read on...

Popular Articles

Daily Sector Scan
Partner Center

Related Articles:

Recent Articles by Balachander
More Articles on: Finance , Real Estate

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.