In a report published Tuesday, Oppenheimer analyst Ben Chittenden initiated coverage on Walter Investment Management Corp. WAC with a Perform rating.
In the report, Oppenheimer noted, “We are initiating coverage of Walter Investment Management (WAC) with a Perform rating. WAC has spent the last few years acquiring all the right assets to take advantage of the secular shift taking place in the mortgage finance space. It's now the ninth largest servicer in the country with a $215B servicing portfolio and $320B pipeline. It has a ramping originations business where volume gains should help offset some of the gain-on-sale margin compression. WAC also has a reverse mortgage platform and tangential businesses in insurance and asset receivables management. There are two things that hold us back from recommending the stock: 1) so far we haven't seen a consistent earnings trajectory from the acquisitions and 2) valuation.”
Walter Investment Management Corp. closed on Monday at $40.36.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in