Analysts have been eager to weigh in on the Financial sector with new ratings on Farmland (FPI), Ready Capital Corporation (RC) and Global Net Lease (GNL).
Farmland (FPI)
In a report released today, Craig Kucera from B.Riley FBR reiterated a Hold rating on Farmland, with a price target of $6.50. The company’s shares closed yesterday at $6.47.
Kucera observed:
“We are reducing 2019 earnings estimates for Neutral-rated Farmland Partners Inc. (FPI), as farmland dispositions have been (and are expected) to be at a slower pace than we previously assumed, with proceeds expected to repurchase shares trading at a deep discount to our NAV estimate. As such, we are reducing our 2019 FFO from $0.24 to $0.22 and our 2019 AFFO from $0.30 to $0.27. FPI now trades at 63% of our NAV estimate of $10.26 (based on 2019E NOI at a 4.3% cap rate, and taking into account completed and anticipated share repurchase activity) vs. other farmland peers at 100% and timberland REITs at 88%, or 24.3x 2019E AFFO vs. its timber and farm REIT peers currently trading at 23.4x and 24.1x, respectively. We continue to believe that FPI’s share price will largely be governed by its AFFO multiple (vs.”
According to TipRanks.com, Kucera is a 4-star analyst with an average return of 6.2% and a 66.7% success rate. Kucera covers the Financial sector, focusing on stocks such as NexPoint Residential Trust Inc, Urstadt Biddle Properties Inc, and Consolidated-Tomoka Land Co.
Currently, the analyst consensus on Farmland is a Hold with an average price target of $7.25.
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Ready Capital Corporation (RC)
B.Riley FBR analyst Timothy P. Hayes reiterated a Buy rating on Ready Capital Corporation today and set a price target of $17.50. The company’s shares closed yesterday at $14.85.
Hayes observed:
“We reiterate our Buy rating and $17.50 price target on shares of Ready Capital (RC) following 1Q19 results that missed our estimates and were impacted by several short-lived headwinds. We knew this was going to be a tough quarter as the SBA 7(a) pipeline dried up with the government shutdown and Freddie Mac SBL volumes declined as Fannie Mae reduced pricing, which resulted in lower realized gains Q/Q.”
According to TipRanks.com, Hayes is a 4-star analyst with an average return of 8.2% and a 78.4% success rate. Hayes covers the Financial sector, focusing on stocks such as Saratoga Investment Corp, Starwood Property Trust, and Cherry Hill Mortgage.
Ready Capital Corporation has an analyst consensus of Moderate Buy, with a price target consensus of $17.50.
Global Net Lease (GNL)
B.Riley FBR analyst Bryan Maher maintained a Buy rating on Global Net Lease yesterday and set a price target of $24. The company’s shares closed yesterday at $18.73.
Maher observed:
“Global Net Lease reported 1Q19 results that were in line with consensus, but modestly below our estimates. AFFO/share came in at $0.48, in line with the consensus estimate, but below our $0.50 estimate. Adjusted EBITDA came in at $56.9M, slightly above the consensus estimate of $56.6M, but below our estimate of $58.2M. The miss to our estimates was driven by slightly lower than expected revenues ($75.5M vs. our estimate of $75.9M), combined with higher than expected operating fees to related parties ($8.0M vs. our estimate of $7.2M) and higher than expected general and administrative expenses ($3.2M vs. our estimate of $2.6M).”
According to TipRanks.com, Maher is a 1-star analyst with an average return of -0.4% and a 49.0% success rate. Maher covers the Financial sector, focusing on stocks such as Industrial Logistics Properties Trust, Senior Housing Properties Trust, and Office Properties Income Trust.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Global Net Lease with a $24 average price target.
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