PHH Stock Rating Reaffirmed by Morgan Stanley (PHH)
PHH (NYSE:PHH)‘s stock had its “equal weight” rating reiterated by Morgan Stanley in a research note issued on Tuesday. They currently have a $24.00 price objective on the stock, up from their previous price objective of $23.00. Morgan Stanley’s price objective points to a potential upside of 4.30% from the company’s current price.
The analysts wrote, “We have updated our model and estimates for the announced fleet sale. Though the exact usage of excess cash remains uncertain, we assume PHH will employ a combination of alternatives. In our base case, we assume the remainder of the 2016 debt is repaid in 4Q14 (following the repayment of the 2014 notes in September) and PHH begins a buyback in 4Q14, in addition to supporting growth in the mortgage businesses. We increase our price target by $1 to $24, based on PHH’s pro forma balance sheet.”
PHH (NYSE:PHH) opened at 23.01 on Tuesday. PHH has a 52 week low of $18.82 and a 52 week high of $27.13. The stock’s 50-day moving average is $23.46 and its 200-day moving average is $24.38. The company has a market cap of $1.320 billion and a P/E ratio of 35.57. PHH also saw a large increase in short interest during the month of May. As of May 30th, there was short interest totalling 17,581,653 shares, an increase of 18.6% from the May 15th total of 14,824,587 shares. Approximately 30.8% of the company’s stock are sold short. Based on an average trading volume of 2,865,406 shares, the short-interest ratio is currently 6.1 days.
PHH (NYSE:PHH) last announced its earnings results on Wednesday, May 7th. The company reported ($0.32) EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.23 by $0.55. The company had revenue of $517.00 million for the quarter, compared to the consensus estimate of $598.63 million. During the same quarter in the prior year, the company posted $0.21 earnings per share. The company’s quarterly revenue was down 29.2% on a year-over-year basis. On average, analysts predict that PHH will post $-0.18 earnings per share for the current fiscal year.
A number of other analysts have also recently weighed in on PHH. Analysts at Compass Point downgraded shares of PHH from a “buy” rating to a “neutral” rating in a research note on Tuesday, June 3rd. They now have a $26.00 price target on the stock, down previously from $28.00. Separately, analysts at Sterne Agee reiterated a “buy” rating on shares of PHH in a research note on Tuesday, May 27th. They now have a $30.00 price target on the stock, up previously from $28.00. Finally, analysts at Sterne Agee reiterated a “buy” rating on shares of PHH in a research note on Tuesday, May 27th. They now have a $30.00 price target on the stock, up previously from $28.00. Two research analysts have rated the stock with a sell rating, five have given a hold rating and two have issued a buy rating to the stock. PHH currently has a consensus rating of “Hold” and a consensus price target of $25.53.
PHH Corporation (NYSE:PHH) is an outsource provider of mortgage and fleet management services.
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