Stonegate Mortgage started a Buy at FBR


Calling Stonegate (SGM) well-positioned to take advantage of the market shift to non-bank originators, analyst Paul Miller initiates the company with a Buy and $21 price target.

He sees FY14 and FY15 EPS at $3.50 and $6 respectively, with tangible book value rising to $22.31 by year-end 2015 "should the company achieve its targeted origination and servicing portfolio growth."

Stonegate had unfortunate timing with its IPO last month coming at a time of slowing originations and when investors were ready to take a break from the previously red-hot non-bank originators/servicers like Nationstar (NSM) and Ocwen (OCN).

Comments (1)
  • Matthew Mazurczak
    , contributor
    Comments (1476) | Send Message
     
    Smart call by this analyst. With 10 year rates on the rise these MSRs will become more valuable also.
    20 Nov 2013, 04:32 PM Reply Like
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