B.Riley FBR analyst Timothy P. Hayes reiterated a Buy rating on Great Ajax Corp (AJX) on December 31 and set a price target of $18. The company’s shares opened today at $11.92, close to its 52-week low of $11.56.
Hayes noted:
“We reiterate our $18 price target on shares of Great Ajax Corp. (AJX) following the announcement of a $0.05/share special dividend. We believe that the company has declared the special dividend in order to comply with REIT taxable income distribution requirements and will distribute approximately 90% to 95% of its FY18 taxable income to shareholders. We continue to believe that new JV transactions and an improvement in credit will increase taxable income and warrant a higher dividend ahead. As such, we view AJX shares as attractively valued, currently trading at ~0.75x book value and offering an ~11% dividend yield (including the $0.05 special dividend).”
According to TipRanks.com, Hayes is a 2-star analyst with an average return of -0.1% and a 42.9% success rate. Hayes covers the Financial sector, focusing on stocks such as Ready Capital Corporation, Saratoga Investment Corp, and Cherry Hill Mortgage.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Great Ajax Corp with a $18 average price target.
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Great Ajax Corp’s market cap is currently $227.2M and has a P/E ratio of 8.51. The company has a Price to Book ratio of 0.76.
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Great Ajax Corp. operates as an real estate investment trust. It acquires, invests and manages a portfolio of mortgage loans secured by single- family residences and single-family properties. The firm holds real-estate owned properties acquired upon the foreclosure, other settlement of owned non-performing loans, or that acquires in the market.
