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Analysts Offer Insights on Financial Companies: Ready Capital Corporation (RC) and A-Mark Precious Metals (AMRK)


Companies in the Financial sector have received a lot of coverage today as analysts weigh in on Ready Capital Corporation (RC) and A-Mark Precious Metals (AMRK).

Ready Capital Corporation (RC)

In a report released today, Timothy P. Hayes from B.Riley FBR reiterated a Buy rating on Ready Capital Corporation, with a price target of $17.50. The company’s shares opened today at $14.95.

Hayes noted:

“We reiterate our Buy rating and $17.50 price target on shares of Ready Capital Corporation (RC), following strong 3Q18 results that beat our estimates and a merger announcement that should bring about several benefits to the company, including earnings accretion and enhanced scale/trading liquidity—all of which should warrant a stronger valuation, in our view. Starting with earnings, RC achieved a core ROE of 11.3% this quarter, the third consecutive quarter that the company has beat its 10%-plus target, which, we believe, highlights the earnings power of the diversified SBC platform and indicates dividend stability. Relating to the merger, RC announced that it would be acquiring Owens Realty Mortgage (ORM) in an all-stock transaction.”

According to TipRanks.com, Hayes is a 4-star analyst with an average return of 6.8% and a 75.0% success rate. Hayes covers the Financial sector, focusing on stocks such as Saratoga Investment Corp, Cherry Hill Mortgage, and Hercules Capital.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Ready Capital Corporation with a $17 average price target, representing a 13.7% upside. In a report released today, Compass Point also upgraded the stock to Buy with a $16.50 price target.

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A-Mark Precious Metals (AMRK)

In a report released today, Sarkis Sherbetchyan from B.Riley FBR reiterated a Hold rating on A-Mark Precious Metals, with a price target of $16.50. The company’s shares opened today at $12.84.

Sherbetchyan said:

“Metals (AMRK, $16.50 PT) reported 1Q19 (Sep.) results after the market close on Thursday, 11/8. Forward contract sales drove the top-line miss relative to our model, while the GM% exceeded our forecast due to improved market conditions. In that regard, higher volatility and lower precious metals prices drove demand for physical products and improved premium spreads. Further, net interest income from AMRK’s secured loan portfolio far outpaced our assumption, despite a larger-than-anticipated sequential decline in the number of secured loans, which was primarily driven by margin call activity. We expect the secured lending segment to resume growth, as AMRK completed a $100M asset- backed securitization specifically to grow the direct lending business.”

According to TipRanks.com, Sherbetchyan is a 4-star analyst with an average return of 6.2% and a 48.4% success rate. Sherbetchyan covers the Consumer Goods sector, focusing on stocks such as Lightpath Technologies, Vishay Precision Group, and S&W Seed Company.

Currently, the analyst consensus on A-Mark Precious Metals is a Hold with an average price target of $16.50.

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