ARMOUR Residential Stock Is Fairly Priced, Says MLV
In a research report published today, MLV analyst Richard Eckert downgraded shares of ARMOUR Residential REIT (NYSE:ARR) to Hold rating, and reduced his price target to $4.00, which still represents a potential upside of 7% from where the stock is currently trading.
Eckert explained, “We are lowering our rating on ARR shares to Hold from Buy. The lower rating is a product of the diminished upside potential reprersented by our new price target of $4.00–down from $4.50 previously–and the smaller yield we are projecting as a result of last week’s dividend cut. At the new total return potential of 19.5% (6.7% price appreciation potential + 12.8% projected yield at current market values), we believe the risks and rewards attendant on an investment in ARR shares are fairly balanced and the stock fairly priced.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Richard Eckert has a total average return of 2.6% and a 53.8% success rate. Eckert has a 6.0% average return when recommending ARR, and is ranked #1866 out of 3426 analysts.