Ocwen Financial Corp (OCN) PT Raised to $32 at Keefe, Bruyette & Woods

Keefe, Bruyette & Woods raised the price target on Ocwen Financial Corp (NYSE: OCN) to $32.00 (from $28.00) while maintaining a Market Perform rating.

The analyst commented, "Post-1Q earnings, we increase our 2024-2025 estimates by 5-7% primarily on higher gross margins. For 2024-2025, we forecast 5-7% delivery growth and average gross margins of 23.5-24.7% (vs. 2023's 24.8% and 2022's 28.8%). MTH suggested its long-run 22% margin has shifted higher, which it will likely discuss in upcoming investor day webcasts. Our Sideways housing thesis remains intact, anchored by low resale inventory and >90% of home mortgage borrowers having rates below 6%. Our new $195 price target (from $180) equates to 1.5x tangible book value and 1.3x forward book value, similar to mid-cap peers and modestly attractive. Still, we remain Market Perform with a preference for larger-cap peers in the current environment."

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