Piper Jaffray Assumes, Downgrades Altisource Portfolio Solutions (ASPS) to Neutral

Piper Jaffray downgraded Altisource Portfolio Solutions (NASDAQ: ASPS) from Overweight to Neutral with a price target of $27.00 (from $46.50) in assumed coverage.

Analyst Kevin Barker commented, "We are assuming coverage of Altisource Portfolio Solutions (ASPS). In conjunction with the assumption of coverage, we are lowering our rating on ASPS to Neutral from Overweight and lowering our price target to $27 from $46.50. At current levels, we believe the stock is fairly valued given the company's main source of earnings (default servicing from OCN) is in run-off and there is a significant risk to ASPS's business model if OCN's private label servicing were to be pulled by New Residential (NRZ) in 2017. We do not expect this to occur, but it will remain an overhang for the stock until OCN attains an 'Average' servicer rating from S&P. Our price target of $27 is equal to 5.0x FY16E EPS of $5.33."

For an analyst ratings summary and ratings history on Altisource Portfolio Solutions click here. For more ratings news on Altisource Portfolio Solutions click here.

Shares of Altisource Portfolio Solutions closed at $24.56 yesterday.

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