There’s a lot to be optimistic about in the Financial sector as 2 analysts just weighed in on Axos Financial Inc (AX) and Cherry Hill Mortgage (CHMI) with bullish sentiments.
Axos Financial Inc (AX)
In a report released yesterday, Steve Moss from B.Riley FBR reiterated a Buy rating on Axos Financial Inc, with a price target of $42. The company’s shares opened today at $28.29, close to its 52-week low of $26.56.
Moss noted:
“Financial’s (AX) acquisition of $225M in total deposits from MWABank as it improves Axos funding mix and should be modestly accretive to EPS. Axos will replace higher cost funds with the acquired deposits and will not pay a premium for the deposits. Like Axos, MWABank’s platform is primarily internet-based, not branch based. The deal reflects Axos’ continued emphasis to improve and optimize its funding mix to opportunistically create value for shareholders. We reiterate our Buy rating and $42 price target as Axos trades at 8.9x our calendar year estimate of $3.25.”
According to TipRanks.com, Moss is a 2-star analyst with an average return of -0.4% and a 41.8% success rate. Moss covers the Financial sector, focusing on stocks such as Zions Bancorporation National Association, Seacoast Banking Corporation Of Florida, and The Bank of Princeton.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Axos Financial Inc with a $42.33 average price target.
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Cherry Hill Mortgage (CHMI)
B.Riley FBR analyst Timothy P. Hayes reiterated a Buy rating on Cherry Hill Mortgage today and set a price target of $19. The company’s shares opened today at $18.73.
Hayes commented:
“We reiterate our $19 price target on shares of Investment Corp. (CHMI) following the announcement of a $0.15/share special dividend. We believe that taxable income has been running well ahead of core earnings and that the company declared the special dividend in order to comply with REIT taxable income distribution requirements. As such, we expect CHMI to distribute approximately 90% to 95% of its FY18 taxable income to shareholders. CHMI also maintained its $0.49/share dividend, which was in line with our expectations. We continue to believe that CHMI has the liquidity and infrastructure to grow the MSR portfolio, through its flow-sale agreement with Roundpoint, and to invest in non-agency RMBS/CRTs, which should further diversify the portfolio, supporting book value stability and the dividend.”
According to TipRanks.com, Hayes is a 4-star analyst with an average return of 7.1% and a 68.3% success rate. Hayes covers the Financial sector, focusing on stocks such as Ready Capital Corporation, Saratoga Investment Corp, and Hercules Capital.
The word on The Street in general, suggests a Hold analyst consensus rating for Cherry Hill Mortgage.
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