In a report published Friday, Sterne Agee analyst Henry J. Coffey reiterated a Buy rating on Ocwen Financial Corp. (NYSE: OCN), and raised the price target from $45.00 to $53.00.
In the report, Coffey noted, “Our analysis suggests that in FY13 OCN will generate $560-$570 million in free cash flow with which to buy back stock, pay down debt, or make additional investments in growth not currently reflected in our estimates. We are increasing our price target from $45 to $53 to reflect this, the high component in servicing in the earnings mix, and other positive factors.”
Ocwen Financial Corp. closed on Thursday at $43.98.
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