Lehman Ups Countrywide to 'Overweight'
Lehman upgraded Countrywide Financial (CFC ) to overweight from equal-weight.
Analyst Bruce Harting says he upgraded the mortgage loan company based on current trends in the 10-year Treasury rate, and the company's ability to continue to grow its servicing portfolio through high repayment activity and growth at its bank unit.
As a result, he now looks for Countrywide to generate $7.75 per share in earnings per share this year. He says assuming a target forward multiple of just eight, the new price target of $62 per share represents a 24% upside from current levels.