Equities research analysts at Morgan Stanley assumed coverage on shares of Nationstar Mortgage Holdings (NYSE:NSM) in a research note issued to investors on Wednesday, American Banking and Market News reports. The firm set an “overweight” rating and a $70.00 price target on the stock. Morgan Stanley’s price objective would suggest a potential upside of 28.30% from the stock’s previous close.
The analysts wrote, “Though NSM has outperformed servicing peers, we see additional upside to the stock from here as 1) servicing profitability doubles over the next 3 quarters, 2) retail origination mix increases and 3) HARP recapture remains robust. We believe NSM can double its servicing profitability through a combination of servicing efficiency gains, improving delinquencies, lower advance costs, and improving revenue margins. We forecast pretax core servicing margin improving to 10bps in 1Q14e and 12bps in 4Q14e from 5bps in 2Q13.”
Shares of Nationstar Mortgage Holdings (NYSE:NSM) traded up 1.06% during mid-day trading on Wednesday, hitting $55.14. The stock had a trading volume of 472,384 shares. Nationstar Mortgage Holdings has a 52-week low of $23.53 and a 52-week high of $54.58. The stock has a 50-day moving average of $48.97 and a 200-day moving average of $41.44. The company has a market cap of $4.908 billion and a P/E ratio of 15.99.
Nationstar Mortgage Holdings (NYSE:NSM) last released its earnings data on Tuesday, August 6th. The company reported $1.50 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.98 by $0.52. The company had revenue of $603.70 million for the quarter, compared to the consensus estimate of $527.00 million. During the same quarter last year, the company posted $0.41 earnings per share. Nationstar Mortgage Holdings’s revenue was up 197.7% compared to the same quarter last year. On average, analysts predict that Nationstar Mortgage Holdings will post $4.67 earnings per share for the current fiscal year.
Several other analysts have also recently commented on the stock. Analysts at Oppenheimer initiated coverage on shares of Nationstar Mortgage Holdings (NYSE:NSM) in a research note to investors on Monday. They set an “outperform” rating and a $62.00 price target on the stock. Separately, analysts at Zacks upgraded shares of Nationstar Mortgage Holdings (NYSE:NSM) from a “neutral” rating to an “outperform” rating in a research note to investors on Monday, August 12th. They now have a $52.50 price target on the stock. Finally, analysts at Keefe, Bruyette & Woods raised their price target on shares of Nationstar Mortgage Holdings (NYSE:NSM) from $44.00 to $52.00 in a research note to investors on Wednesday, August 7th.
One investment analyst has rated the stock with a hold rating and nine have issued a buy rating to the company’s stock. The company currently has an average rating of “Buy” and a consensus target price of $52.75.
Nationstar Mortgage Holdings Inc is a non-bank residential mortgage servicer with a range of services across the residential mortgage product spectrum.