Piper Jaffray Reiterates Overweight Rating On ASPS

Piper Jaffray is reiterating its Overweight rating on Altisource Portfolio Solutions (NASDAQ: ASPS) following new that Ocwen Financial (NYSE: OCN) is one of two bidders on the Goldman Sachs mortgage servicing portfolio, Litton Loan.

Says Piper Jaffray, in its report, “We believe the Litton portfolio UPB size is $40-$50 billion. Also, we believe the Litton portfolio carries a higher level of advances/delinquent loans than OCN's current portfolio, thus offering a larger default/foreclosure revenue opportunity for ASPS. Our '11/'12 EPS estimates of $2.64/$2.95 for ASPS assume no OCN servicing additions. We estimate that each $10 billion in additional OCN servicing could add around $0.43 to our ASPS EPS estimates on a fully-ramped, annual run-rate basis.”

Piper Jaffray maintains a $38 on the stock.

ASPS closed yesterday at $31.19.