Nationstar is a Coppell, TX-based mortgage servicer in the U.S.
"The net income dollars are declining largely on the back of lower expected Xome profitability partially offset by share repurchase...We are reducing our target price...to reflect lower value for Xome in the near-term," Credit Suisse said in an analyst note.
Nationstar's Xome provides technology and data enhanced solutions to home buyers, home sellers, real estate agents and companies engaged in the origination or servicing of mortgage loans.
The company offers an attractive risk and reward at current levels with the stock trading at a 24% discount to current book value, the firm noted.
"With the improved servicing profitability and more of the servicing portfolio growth coming from subservicing, we feel this discount is unwarranted," Credit Suisse added.
Shares of Nationstar are inching up 0.07% to $12.93 in after-hours trading on Monday.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
This is driven by several weaknesses, which should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks covered.
The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and disappointing return on equity.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: NSM