PennyMac Financial price target raised to $85 from $65 at BTIG

BTIG analyst Eric Hagen raised the firm’s price target on PennyMac Financial to $85 from $65 and keeps a Buy rating on the shares. The firm expects banks could continue shedding MSRs if new capital requirements end up more restrictive than the 250% risk weight already in place through Basel, and tells investors in a research note that PennyMac is likely to retain leadership in the correspondent channel, and could engage again in MSRs if it’s matched with attractively priced debt capital.