PennyMac Financial started a Buy at Goldman

|About: PennyMac Financial Services (PFSI)|By:, SA News Editor

"The company has taken advantage of a pull-back by large banks in correspondent lending and an increased willingness by smaller lenders to sell their production due to capital constraints," writes analyst Eric Beardsley, initiating PennyMac Financial (PFSI) with a Buy and $19 price target.

"Relative to other non-bank mortgage servicers, the company is not reliant on bulk acquisitions of mortgage servicing rights to grow, which should limit downside risk, in our view."