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Investors sour on Nationstar deal

Published 02/13/2018, 12:18 PM
© Reuters.  Investors sour on Nationstar deal
NSM
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  • Nationstar Mortgage (NYSE:NSM) is lower by 2.05% to $16.75 after announcing a merger with WMIH Corp. (NASDAQ:WMIH) for either $18 per share in cash, or shares of WMIH.
  • The deal is dilutive, says Piper's Kevin Barker, downgrading NSM to Underweight and cutting the price target to $13.50 from $18. He figures it will reduce book value per share to $13.09 to $16.22.
  • There's also the addition of $826M in debt to the balance sheet, and questions over whether the DTA can be utilized quickly.
  • Source: Bloomberg
  • WMIH, by the way, is up 56.4%.
  • Previously: WMIH Corp. finds its target in Nationstar Mortgage (Feb. 13)
  • Now read: No Strategy In Sight: Global Blockchain Technologies Lacks Viable Investments


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