PennyMac Financial price target raised to $135 from $115 at BTIG

BTIG raised the firm’s price target on PennyMac Financial (PFSI) to $135 from $115 and keeps a Buy rating on the shares after its Q4 results. The company’s strong originations override its noisy MSR – mortgage servicing rights – hedges, and the firm contends that PennyMac’s technology and lower servicing costs could support an even more stable earnings profile than seen historically for the mortgage units within the banks, the analyst tells investors in a research note.