B.Riley FBR Reiterates a Buy Rating on HomeStreet

In a report released today, Steve Moss from B.Riley FBR reiterated a Buy rating on HomeStreet (NASDAQ: HMST), with a price target of $35. The company’s shares opened today at $29.

Moss said:

“HomeStreet (HMST) announced it will restructure its mortgage banking business to reduce expenses and improve efficiency. The restructuring is expected to reduce HMST’s mortgage head count by 10% and reduce expenses by $13.1M, or $0.38/share, all else being equal. The expected cost savings represent ~5% of mortgage banking revenues. We view the cuts as a positive step toward rightsizing HMST’s mortgage banking operations. As we wrote in our June 11, 2018, upgrade (“Take the Risk/Reward”), we believe efficiency initiatives at the mortgage bank are necessary to improve HMST’s long-term earnings outlook. Bottom line: We view the announcement as positive for HMST shares, which trade at 1.16x TBV; we reiterate our Buy rating and $35 price target.”

According to TipRanks.com, Moss is a 5-star analyst with an average return of 13.2% and a 79.8% success rate. Moss covers the Financial sector, focusing on stocks such as Seacoast Banking Corporation Of Florida, Meta Financial Group, and Banc of California.

HomeStreet has an analyst consensus of Moderate Buy, with a price target consensus of $30.75.

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The company has a one-year high of $32.60 and a one-year low of $24. Currently, HomeStreet has an average volume of 192.3K.

Based on the recent corporate insider activity of 83 insiders, corporate insider sentiment is neutral on the stock.

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HomeStreet, Inc. is a holding company, which engages in the provision of financial services through HomeStreet Bank. It operates through the Commercial and Consumer Banking, and Mortgage Banking segments.