There’s a lot to be optimistic about in the Financial sector as 2 analysts just weighed in on HomeStreet (HMST) and NexPoint Residential Trust Inc (NXRT) with bullish sentiments.
HomeStreet (HMST)
In a report released today, Steve Moss from B.Riley FBR reiterated a Buy rating on HomeStreet, with a price target of $35. The company’s shares closed yesterday at $28.14.
Moss commented:
“HomeStreet’s (HMST—Buy) first quarter 2019 results were messy due to the pending sale of mortgage banking operations, but represent a turn in the right direction as HMST exits a money- losing business and frees up capital for share repurchases. HMST’s also announced they had hired consultants to drive further efficiency improvements once the sale of mortgage banking operations are complete in 2Q19. Earnings are likely to be volatile for a few more quarters, but we like management’s actions as longer-term they should put HMST on the right path to higher earnings and lower earnings volatility, the combination of which should enhance franchise value. We reiterate our Buy rating and $35 PT.”
According to TipRanks.com, Moss is a 3-star analyst with an average return of 1.2% and a 50.0% 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 Moderate Buy analyst consensus rating for HomeStreet with a $33 average price target.
See today’s analyst top recommended stocks >>
NexPoint Residential Trust Inc (NXRT)
In a report released today, Craig Kucera from B.Riley FBR reiterated a Buy rating on NexPoint Residential Trust Inc, with a price target of $41. The company’s shares closed yesterday at $37.49.
Kucera noted:
“We are raising our earnings estimates for Trust, Inc. (NXRT) post a 1Q19 beat, with our 2019E FFO increasing from $1.88 to $1.89, while also raising our 2020 FFO estimate from $2.02 to $2.06. We continue to expect NXRT to extract incremental value from its existing portfolio of assets through 2020 via value-add spending yielding a 20%-40% ROI, leading to same-store results that are likely to remain significantly above multifamily peers over the same time frame. NXRT is a multifamily REIT that is focused on value-add multifamily investments primarily in the Sunbelt, and ~half of all units have undergone some form of value- add (typically a light rehab of interior units for about $5,000/unit), earning a ~23%+ return on incremental capital through higher rents.”
According to TipRanks.com, Kucera is a 4-star analyst with an average return of 6.3% and a 68.8% success rate. Kucera covers the Financial sector, focusing on stocks such as Urstadt Biddle Properties Inc, Consolidated-Tomoka Land Co, and Bluerock Residential Growth.
Currently, the analyst consensus on NexPoint Residential Trust Inc is a Moderate Buy with an average price target of $41.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
