Mr. Cooper price target raised to $88 from $79 at Piper Sandler

Piper Sandler raised the firm’s price target on Mr. Cooper to $88 from $79 and keeps an Overweight rating on the shares. The firm notes this was a good quarter for Mr. Cooper as earnings were better than expected compared to the adjusted guidance provided in November following the cyber-security issue. Overall, trends remain favorable and earnings should continue to move higher, Piper adds. The firm further notes that management issued new guidance for ROTE to “steadily increase” and reach the mid-high teens by year-end 2015 compared to about 11% in 2023. Macro-factors could certainly impact this forecast, but management appeared fairly confident this level of profitability was sustainable, Piper says.