There’s a lot to be optimistic about in the Financial sector as 3 analysts just weighed in on American Homes (NYSE:AMH), Main Street Capital (NYSE:MAIN) and Cedar Realty Trust (NYSE:CDR) with bullish sentiments.
American Homes (AMH)
B.Riley FBR analyst Alex Rygiel reiterated a Buy rating on American Homes on August 3 and set a price target of $26. The company’s shares opened today at $22.63, close to its 52-week high of $23.12.
Rygiel noted:
“Last night, 8/2, after the close, AMH reported 2Q results that were largely positive. Core FFO came in at $0.27, in line with both the Street and our estimates, while the company’s leasing activity helped push the same-store portfolio to 96.6% occupancy, a record high for the company. This helped drive blended lease spread of 4.9%, 50 bps higher than 2Q17, which we believe exhibits the high level of demand inherent with the company’s core markets. Additionally, the company updated its outlook for 2018, tightening its expectations for core NOI (after capex) by 25 bps on both the low and high end to a range of 3.25% to 3.75% (from 3.0% to 4.0%), while also raising the low end of its acquisitions guidance by $100 million to a range of $500-$600 million (from $400-$600 million). We will look for additional market commentary on its conference call. We reiterate our Buy rating and $26.00 PT.”
According to TipRanks.com, Rygiel is a 5-star analyst with an average return of 13.7% and a 65.1% success rate. Rygiel covers the Basic Materials sector, focusing on stocks such as Tutor Perini Corp, Quanta Services, and Dycom.
American Homes has an analyst consensus of Strong Buy, with a price target consensus of $26.33, which is a 16.3% upside from current levels. In a report issued on August 3, Mizuho Securities also reiterated a Buy rating on the stock with a $25 price target.
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Main Street Capital (MAIN)
B.Riley FBR analyst Timothy P. Hayes reiterated a Buy rating on Main Street Capital today and set a price target of $42. The company’s shares opened today at $40.61, close to its 52-week high of $41.21.
Hayes noted:
“We reiterate our Buy rating and $42 price target on shares of Main Street Capital Corp. (MAIN), following strong 2Q18 results that beat B. Riley FBR and Street estimates as well as management guidance with stronger dividend income driving higher NII and portfolio appreciation resulting in $17M of net gains. Following record quarterly growth in 1Q18, the LMM portfolio continued to expand in 2Q18 while credit quality remained strong. The weighted average yield on the LMM portfolio increased modestly Q/Q and management noted an “above-average” pipeline, both of which should support stronger earnings power ahead. Reflecting these positive trends, the company decided to increase its quarterly dividend from $0.57 per share to $0.585 per share.”
According to TipRanks.com, Hayes is a 4-star analyst with an average return of 10.2% and a 85.7% success rate. Hayes covers the Financial sector, focusing on stocks such as Sutherland Asset Management Corporation, Starwood Property Trust, and Cherry Hill Mortgage.
Currently, the analyst consensus on Main Street Capital is a Moderate Buy with an average price target of $41.
Cedar Realty Trust (CDR)
In a report released today, Craig Kucera from B.Riley FBR reiterated a Buy rating on Cedar Realty Trust, with a price target of $5.50. The company’s shares opened today at $4.62.
Kucera commented:
“We are lowering our 2019 earnings estimates for Trust (CDR) given our expectation for a pickup in expected disposition volume (with revised guidance for 2H18 offered at $15M-$30M) as CDR continues to reposition the portfolio and will begin accelerating redevelopment spending on an increasing number of mixed-use projects in 2019 and beyond. Our 2019 operating FFO estimate declines from $0.56 to $0.53, while our 2018 operating FFO estimate of $0.58 is unchanged as we look for flattish SS NOI growth in 2018 before accelerating to a more normalized 2%+ in 2019.”
According to TipRanks.com, Kucera is a 4-star analyst with an average return of 6.3% and a 67.8% success rate. Kucera covers the Financial sector, focusing on stocks such as NexPoint Residential Trust Inc, National Retail Properties, and Gladstone Commercial Corp.
Currently, the analyst consensus on Cedar Realty Trust is a Moderate Sell with an average price target of $3.50.
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