There’s a lot to be optimistic about in the Financial sector as 3 analysts just weighed in on American Homes (AMH), First Commonwealth (FCF) and Office Properties Income Trust (OPI) with bullish sentiments.
American Homes (AMH)
B.Riley FBR analyst Alex Rygiel reiterated a Buy rating on American Homes on May 3 and set a price target of $26. The company’s shares closed on Friday at $24.28, close to its 52-week high of $24.43.
Rygiel wrote:
“After the close (5/2), Rent (AMH) reported solid results, with core FFO per share coming in at $0.27, beating the Street estimate of $0.26, although coming in slightly below our estimate. The company posted strong operating results, with core NOI growth of 5.4% Y/ Y , driven by core revenue growth of 4.2% and core expense growth of 2.1%, while the average R&M and turnover costs, net, plus recurring capex per same-store home, was slightly down vs. 1Q18. The company also reiterated its outlook for 2019, with core FFO still expected to fall in the range of $1.06 to $1.14; management continues to expect 2019 results to be driven by core revenue, expense, and NOI growth of 3.7%, 4.0%, and 3.1%, respectively (each representing the midpoint). We reiterate our Buy rating and $26 PT.”
According to TipRanks.com, Rygiel is a 5-star analyst with an average return of 8.2% and a 60.5% success rate. Rygiel covers the Basic Materials sector, focusing on stocks such as Granite Construction Inc, Tutor Perini Corp, and Quanta Services.
Currently, the analyst consensus on American Homes is a Moderate Buy with an average price target of $25.
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First Commonwealth (FCF)
B.Riley FBR analyst Steve Moss reiterated a Buy rating on First Commonwealth on May 3 and set a price target of $16. The company’s shares closed on Friday at $13.87.
Moss wrote:
“FCF reported strong first quarter 2019 results despite a penny miss as loan growth and NIM expansion were better than expected and positive core deposit growth trends (up 3.8% LQ). Additionally, FCF’s acquisition of $525M in deposits in central Pennsylvania is a significant positive as it expands and enhances FCF’s presence, especially in Centre County. The deal also improves FCF’s loan to deposit ratio, and should be ~5% accretive to 2020 earnings. We expect FCF’s financial performance to continue to improve, supported by positive first quarter trends. FCF trades at 12.2x our 2019 estimate, a 5% discount to peers, which we view as attractive for a quality bank with an ROAA of 1.4% and an ROTCE of 15%. We reiterate our Buy rating and $16 price target.”
According to TipRanks.com, Moss is a 3-star analyst with an average return of 1.5% and a 52.2% success rate. Moss covers the Financial sector, focusing on stocks such as Seacoast Banking Corporation Of Florida, Bridgewater Bancshares Inc, and Meta Financial Group.
The word on The Street in general, suggests a Hold analyst consensus rating for First Commonwealth.
Office Properties Income Trust (OPI)
In a report released today, Bryan Maher from B.Riley FBR reiterated a Buy rating on Office Properties Income Trust, with a price target of $50. The company’s shares closed on Friday at $28.41, close to its 52-week low of $25.05.
Maher noted:
“Trust (OPI) reported strong 1Q19 results on Friday (5/3) that were well above expectations. Adjusted EBITDAre came in at $111.2M, above our $104.3M estimate and the consensus estimate of $103.4M, while normalized FFO/share came in at $1.53, above our $1.41 estimate and the consensus estimate of $1.37. The beat to our estimates was primarily driven by strong leasing activity, with rental income coming in at $174.8M, well above our $166.3M estimate. The REIT entered into new and renewal leases for more than 825,000 square feet at weighted average rents that were 12.8% above same space prior rents.”
According to TipRanks.com, Maher is a 2-star analyst with an average return of 0.1% and a 51.7% success rate. Maher covers the Financial sector, focusing on stocks such as Industrial Logistics Properties Trust, Senior Housing Properties Trust, and Braemar Hotels & Resorts Inc.
Office Properties Income Trust has an analyst consensus of Hold, with a price target consensus of $36.
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