Goldman Sachs Starts PennyMac Financial (PFSI) at Buy

Goldman Sachs initiated coverage on PennyMac Financial (NYSE: PFSI) with a Buy rating and a price target of $19.00.

Analyst Eric Beardsley said, "PFSI is one of the fastest-growing mortgage originators and servicers in the United States (8th largest mortgage lender overall as of 1Q14), as 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. Relative to other non-bank mortgage servicers, the company is not reliant on bulk acquisitions of mortgage servicing rights (MSRs) to grow, which should limit downside risk, in our view."

For an analyst ratings summary and ratings history on PennyMac Financial click here. For more ratings news on PennyMac Financial click here.

Shares of PennyMac Financial closed at $15.46 yesterday.

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