NSM Nationstar Mortgage tgt raised to $55 at FBR Capital; servicing is a larger piece of the profitability puzzle
07-Aug-13 06:45 ET
Nationstar Mortgage tgt raised to $55 at FBR Capital; servicing is a larger piece of the profitability puzzle
FBR Capital raises their NSM tgt to $55 from $45 as the firm believes co should garner a higher multiple as servicing revenues become a larger percentage of overall profitability, and it moves away from the perception of largely being an originator. Co had another strong operating quarter as servicing profitability hit mgmt's year-end target, originations almost doubled, the acquisition pipeline grew, and operating revenues continue to increase.
WAC just reported an amazing quarter. $3.75/share GAAP EPS. They expect total EPS of 6.00-6.50 for 2013 (which I think is a lowball estimate). Even if given a modest 10 P/E, stock would trade between 60-65. Give them the 20 P/E they deserve because of the enormous growth, stock should be well over 100.