Mr. Cooper price target raised to $67 from $64 at Compass Point

Compass Point raised the firm’s price target on Mr. Cooper to $67 from $64 and keeps a Buy rating on the shares. The analyst says the recent pullback in the shares “creates an interesting buying opportunity.” Mr. Cooper is “uniquely positioned” as the most servicing exposed public mortgage originator/servicer that has one of if not the best cost structures in the industry, the analyst tells investors in a research note. The firm sees potential for the company to reach $10-plus of earnings per share in fiscal 2025. Cooper could be one of the best buyers of mortgage servicing rights assets, with $1.7B of excess capital as of Q2, that could enable “significant earnings growth” over the next few years despite a difficult environment for mortgage originations, contends Compass.