Piper Jaffray Downgrades Ocwen Financial Corp (OCN) to Underweight

October 25, 2016 6:15 AM EDT
Get Alerts OCN Hot Sheet
Price: $5.87 -1.68%

Rating Summary:
    3 Buy, 7 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 21 | Down: 36 | New: 11
Trade OCN Now!
Join SI Premium – FREE

Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.

Piper Jaffray downgraded Ocwen Financial Corp (NYSE: OCN) from Neutral to Underweight and maintained a price target of $2, saying they see no end in sight to the tangible book value burn.

Analyst Kevin Barker commented, "After trading as low as $1.50 per share, OCN has since recovered to over $4.00 per share, or roughly 80% of tangible book value despite burning $2.83 of book value over the past three quarters. Considering we expect OCN to continue burning TBV through 2017 and our view that book value will drop well below $4.00 per share, we believe the risk of owning shares at current levels with the hope the company will earn money one day is high. Ultimately, it comes down to whether OCN can earn money in the future. We do not see how this is the case with the servicing portfolio in run-off and HAMP expiring at the end of 2016."

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

Shares of Ocwen Financial Corp closed at $4.06 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In






Related Categories

Analyst Comments, Downgrades, Hot Downgrades

Related Entities

Piper Jaffray

Add Your Comment