UPDATE: Deutsche Bank Initiates On Altisource Residential On Portfolio Growth

In a report published Wednesday, Deutsche Bank analyst Stephen Laws initiated a Buy rating on Altisource Residential (NYSE: RESI) and initiated a price target of $31.00.

In the report, Deutsche Bank says "As RESI continues to process its portfolio of sub- and non-performing loans, we expect the portfolio of single family rental properties to grow, generating attractive cash flows. Additionally, given the ownership of the underlying real estate, we expect the value of the portfolio to increase from home price appreciation. We expect the dividend to increase as the portfolio grows, and we are establishing a target of $31 per share, which is based on our year end 2014 book value estimate adjusted for the market value of the portfolio. We are initiating coverage with a Buy rating."

Altisource Residential closed on Tuesday at $27.75.