With originations continuing to soar, mortgage banking stocks have getting more attention from Wall Street. Analysts initiated coverage on three last week. The score: one "buy," one "neutral," one "sell."
Gordon Gray at PaineWebber Inc., New York, weighed in with opinions on Fleet Mortgage Group, a "buy," and Countrywide Credit, "neutral." He sees a buying opportunity in Fleet following its recent writedown of servicing rights. On Countrywide he is biding his time, waiting for the market to fully discount an expected slowdown in refinancings. He expects to make Countrywide a "buy" if that should happen.