There’s a lot to be optimistic about in the Financial sector as 3 analysts just weighed in on Ellington Financial (EFC), BBX Capital Corporation (BBX) and Medallion Financial (MFIN) with bullish sentiments.
Ellington Financial (EFC)
B.Riley FBR analyst Timothy P. Hayes reiterated a Buy rating on Ellington Financial on February 22 and set a price target of $18. The company’s shares opened today at $17, close to its 52-week high of $17.48.
Hayes said:
“We reiterate our Buy rating and $18 price target on shares of Ellington Financial LLC (EFC) following 4Q18 results that beat B. Riley FBR/Street estimates and were rather impressive, given the volatility during the quarter. When excluding one-time costs associated with the non- QM securitization and the REIT conversion, adjusted NII per share came in at $0.41, above B. Riley FBR and Street estimates of $0.36 and $0.37, respectively, and in line with the $0.41 per share quarterly dividend. Book value declined modestly (–2.3% Q/Q) in a quarter marked by significant volatility, outperforming most resi mREIT peers, which we attribute to the diversified portfolio and comprehensive hedging strategy.”
According to TipRanks.com, Hayes is a 4-star analyst with an average return of 10.7% and a 85.7% success rate. Hayes covers the Financial sector, focusing on stocks such as Saratoga Investment Corp, Capital Southwest Corp, and Cherry Hill Mortgage.
Currently, the analyst consensus on Ellington Financial is a Strong Buy with an average price target of $18.75, implying a 10.3% upside from current levels. In a report issued on February 14, Maxim Group also reiterated a Buy rating on the stock with a $19.50 price target.
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BBX Capital Corporation (BBX)
In a report issued on February 22, Mike Crawford from B.Riley FBR maintained a Buy rating on BBX Capital Corporation, with a price target of $13.50. The company’s shares opened today at $6.48.
Crawford said:
“We now believe BBX will report its own earnings sometime next week, although the company is unable to confirm when it will release results. That said, we continue to see value creation possible primarily on two fronts: 1) BBX taking action to reduce discount to NAV via stock repurchases and potential asset sales; and 2) BXG and its timeshare peers recovering from bearish group multiple to something more akin to our 10x EV/EBITDA Base Case. In any event, we continue to believe BBX’s valuation discount to NAV is far too wide, given that its underlying businesses (albeit currently dominated by BXG) remain healthy and positioned to grow. Analyst certification and important disclosures can be found on pages 4 – 7 of this report. This document represents an abbreviated discussion of the subject issuer and should not be used as the sole basis for an investment decision.”
According to TipRanks.com, Crawford is a 5-star analyst with an average return of 8.7% and a 59.4% success rate. Crawford covers the Consumer Goods sector, focusing on stocks such as Kratos Defense, Silicon Motion, and Ducommun Inc.
Currently, the analyst consensus on BBX Capital Corporation is a Moderate Buy with an average price target of $13.50.
Medallion Financial (MFIN)
B.Riley FBR analyst Scott Buck maintained a Buy rating on Medallion Financial yesterday and set a price target of $10. The company’s shares opened today at $6.50.
Buck noted:
“Buy-rated Medallion Financial (MFIN) is scheduled to report 4Q18 operating earnings after the market close on a conference call Thursday morning, February 28 th at 9:00am ET (dial-in: Despite some residual noise from the medallion loan portfolio, we expect the quarter’s results to be largely positive as demand for the consumer loan products has remained fairly robust. We have adjusted our 4Q18 estimates lower on higher provision expense, on losses on repossessed inventory related to the Chicago loan portfolio which were disclosed in January. We are now modeling an EPS loss of $0.10, down from a loss of $0.01. We are leaving our 2019 and 2020 estimates unchanged at this time.”
According to TipRanks.com, Buck is ranked #4412 out of 5203 analysts.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Medallion Financial with a $10 average price target, representing a 53.8% upside. In a report issued on February 21, BTIG also initiated coverage with a Buy rating on the stock with a $10 price target.
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