Sterne Agee stock analysts Friday lowered estimates for PHH Corp. after a Thursday afternoon sell-off in the stock, citing expected lending/servicing business trends and
The analysts have reduced their 2013 EPS estimate to 90 cents from $1.65 and their 2014 EPS estimate to $1.70 from $2.75 in adjustments they said “reflect expected trends in loan and servicing volumes, margins and cost.”
“The shares are attractively valued on mark-to-market book value, but core EPS remain weak,” the analysts said in their report. “At the juncture, more specific details regarding plans to achieve required ROE hurdles would bode well for the stock.”
The company’s stock was trading at levels below $21 per share Friday morning and had been trading at levels closer to $23 per share earlier in the week.
The company’s stock fell Thursday afternoon both due to the weakness in the core EPS performance and “the highlighting of previous known news regarding ongoing inquiries re: put-back and other practices by HUD and various state AGs,” according to the analysts.
