HMPT - Home Point Capital cut to Neutral at Credit Suisse to reflect Mr. Cooper deal

2023-05-12 10:20:50 ET

Credit Suisse downgraded Home Point Capital ( NASDAQ: HMPT ) to Neutral from Outperform and cut its price target to $2.33 from $2.50 to reflect its acquisition by Mr. Cooper ( COOP ).

Mr. Cooper ( COOP ) will acquire Home Point ( HMPT ) for ~$324M in cash in a deal that will be accretive to its tangible book value by ~$1/share at closing.

"Our Neutral rating is based on the upside of our PT from current trading levels vs. other stocks in our coverage," said analyst Douglas Harter. "Our $2.33 PT is based on the price COOP offered to pay for HMPT's outstanding shares, with the risk to  achievement of that PT being if the transaction were not to be completed."

The new PT implies 2.6% potential upside to HMPT's last close.

Credit Suisse's rating for Mr. Cooper ( COOP ) is Outperform as it expects the stock to return more than its peers. PT is $59, implying 31.6% potential upside to its last close.

SA Quant is bullish on both Mr. Cooper ( COOP ) and Home Point ( HMPT ).

More on Mr. Cooper

Mr. Cooper to acquire Home Point Capital for $324M in cash

Mr. Cooper: Will Be A Winner In An Era Of Consolidation

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