FBR Capital Reiterates an 'Outperform' on PHH Corporation (PHH); Long-Term Outlook Remains Attractive

FBR Capital reiterates an 'Outperform' on PHH Corporation (NYSE: PHH), PT $28.

FBR analyst says, "We continue to believe PHH remains attractive at 76% of TBV, given the company's core earnings potential and cost-saving initiatives. Prior to the management shakeup in late 2009, the company was unprofitable but still traded at an average of 85% of TBV. With the new management team in place, core earnings have averaged $0.65 per quarter, and the company is projected to grow book value for the first time in its history as a public company. If PHH can show that it can sustain earnings in a shrinking mortgage origination market, we believe shares should trade closer to book value."

"We are adjusting our FY11 operating EPS estimate to $2.20 from $2.90 due to this quarter's operating result, and maintaining our $3.50 FY12 operating EPS estimate."

For more ratings news on PHH Corporation click here and for the rating history of PHH Corporation click here.

Shares of PHH Corporation closed at $21.31 yesterday.

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