Analysts’ Top Financial Picks: Ashford Hospitality Trust (AHT), Hercules Capital (HTGC)


There’s a lot to be optimistic about in the Financial sector as 3 analysts just weighed in on Ashford Hospitality Trust (NYSE:AHT), Hercules Capital (NYSE:HTGC) and CNO Financial (NYSE:CNO) with bullish sentiments.

Ashford Hospitality Trust (AHT)

In a report released today, Bryan Maher from B.Riley FBR maintained a Buy rating on Ashford Hospitality Trust, with a price target of $7.50. The company’s shares opened today at $7.70.

Maher observed:

“Ashford Hospitality Trust (AHT) reported 2Q18 adjusted EBITDA of $120.7M, versus our/ consensus estimates of $123.9M/$126.2M. AFFO/share came in at $0.42, below our/consensus estimate of $0.53/$0.58. The earnings miss was primarily driven by a $3.0M incentive fee that the company accrued during the quarter (due to relative TSR outperformance), higher-than- expected taxes (past NOLs are depleting), as well as higher interest expense/amortization of loan costs associated with the refinancing of 56 hotels that took place during the quarter. Comparable portfolio-wide RevPAR increased 1.6%, while comparable RevPAR at hotels not under renovation improved 2.3%.”

According to TipRanks.com, Maher is a 4-star analyst with an average return of 4.4% and a 63.3% success rate. Maher covers the Financial sector, focusing on stocks such as Industrial Logistics Properties Trust, Government Properties Income Trust, and Senior Housing Properties Trust.

Currently, the analyst consensus on Ashford Hospitality Trust is a Hold with an average price target of $8.

See today’s analyst top recommended stocks >>

Hercules Capital (HTGC)

In a report released today, Timothy P. Hayes from B.Riley FBR reiterated a Buy rating on Hercules Capital, with a price target of $15. The company’s shares opened today at $13.64, close to its 52-week high of $13.97.

Hayes said:

“We reiterate our Buy rating and $15 PT on shares of Hercules Capital (HTGC), following solid 2Q18 results headlined by record origination activity and strong NAV growth. While NII per share of $0.26 came up short of B. Riley FBR/Street estimates of $0.28, GAAP EPS of $0.59 handily beat our $0.34 estimate which, combined with an accretive secondary offering and ATM share issuances, resulted in strong NAV growth. Credit quality improved and Hercules strengthened the right side of the balance sheet by issuing 2025 notes to partially redeem higher-cost 2024 notes. In light of strong demand for venture debt, spurred by robust VC capital investment, and normalized repayment activity, management’s outlook has become increasingly optimistic.”

According to TipRanks.com, Hayes is a 4-star analyst with an average return of 10.7% and a 88.9% success rate. Hayes covers the Financial sector, focusing on stocks such as Sutherland Asset Management Corporation, Starwood Property Trust, and Cherry Hill Mortgage.

Currently, the analyst consensus on Hercules Capital is a Moderate Buy with an average price target of $14.

CNO Financial (CNO)

B.Riley FBR analyst Randy Binner maintained a Buy rating on CNO Financial today and set a price target of $29. The company’s shares opened today at $22.23.

Binner observed:

“We have updated our operating forecast for CNO Financial Group (CNO) to reflect the impact of the reinsurance deal the company entered with Board (CPP) on August 1. We are decreasing 2018E EPS from $2.00 to $1.95 to reflect the transaction, raising 2019E EPS from $2.20 to $2.25 and introducing 2020E EPS of $2.55. We believe the de-risked CNO should trade closer to distribution focused peers AFL, which trade to a blended 2019E P/E of 12.8x. Using this multiple on 2019E EPS yields a $29 price target, up from $25. This transaction will significantly de-risk CNO and reactions from credit rating agencies have been positive. The next catalyst we see in 2H18 is a move from BB+ to BBB-, which in turn should enable an equity friendly debt recap.”

According to TipRanks.com, Binner is a 5-star analyst with an average return of 16.3% and a 71.6% success rate. Binner covers the Financial sector, focusing on stocks such as American Equity Investment Life, American International Group, and Health Insurance Innovations.

CNO Financial has an analyst consensus of Moderate Buy, with a price target consensus of $23.33.

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