XLF - Ocwen Financial initiated with Buy rating at Jefferies as profit seen in Q3

doockie/iStock via Getty Images Mortgage originator and servicer Ocwen Financial (OCN) receives a new Buy rating at Jefferies with a $36 price target, a 23% upside from where it's currently trading. OCN rises 1.7% in early trading. The price target is a ~6x multiple on a FY22 estimated earnings per share of $6.10, slightly discounted to its peers with a ~7x EPS due to limited history of profitability. Jefferies analyst Ryan Carr notes that its expanding servicing portfolio, leadership in reverse mortgage, and MSR investment vehicle with Oaktree positions OCN to achieve profitability beginning in Q3 2021. Ahead of rising interest rates, Ocwen's expansion in the reverse mortgage market represents a "significant growth opportunity" because reverse mortgage customers are generally not interest rate sensitive. Additionally, "seniors have a larger incentive now than ever to stay in their homes longer" and by 2030 all boomers will be seniors, which will increase

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Ocwen Financial initiated with Buy rating at Jefferies as profit seen in Q3