Piper Jaffray Reiterates Overweight Rating On ASPS

Piper Jaffray is reiterating its Overweight rating on Altisource Portfolio Solutions ASPS following new that Ocwen Financial OCN is one of two bidders on the Goldman Sachs mortgage servicing portfolio, Litton Loan. Says Piper Jaffray, in its report, “We believe the Litton portfolio UPB size is $40-$50 billion. Also, we believe the Litton portfolio carries a higher level of advances/delinquent loans than OCN's current portfolio, thus offering a larger default/foreclosure revenue opportunity for ASPS. Our '11/'12 EPS estimates of $2.64/$2.95 for ASPS assume no OCN servicing additions. We estimate that each $10 billion in additional OCN servicing could add around $0.43 to our ASPS EPS estimates on a fully-ramped, annual run-rate basis.” Piper Jaffray maintains a $38 on the stock. ASPS closed yesterday at $31.19.