In a report released today, Merrill Ross from Boenning & Scattergood maintained a Hold rating on NexPoint Residential Trust Inc (NXRT). The company’s shares opened today at $34.08.
Ross observed:
“We ran our model assuming a faster pace of apartment renovations, but that was not quite sufficient to overcome earnings dilution. The capital raise does leave the company with the financial flexibility to make accretive acquisitions, and we would not be surprised to find that this is part of management’s plan over time. In the meantime, the dividend remains very well covered by operating cash flow and we continue to assess risks to the dividend and NAV at a Low level. NXRT has strong same store sales driven by its value-add renovation program that brings lifestyle amenities to workforce housing. NXRT is externally managed, but fees to the manager are capped and there is no incentive fee. We think the manager’s high level of ownership (>22%) helps align interests of shareholders and manager.”
According to TipRanks.com, Ross is a 1-star analyst with an average return of -1.4% and a 50.5% success rate. Ross covers the Financial sector, focusing on stocks such as Preferred Apartment Communities, Bluerock Residential Growth, and Gladstone Commercial Corp.
Currently, the analyst consensus on NexPoint Residential Trust Inc is a Moderate Buy with an average price target of $39.50.
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The company has a one-year high of $38.17 and a one-year low of $23.04. Currently, NexPoint Residential Trust Inc has an average volume of 92.52K.
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NexPoint Residential Trust, Inc. engages in the acquisition, management, and disposition of multifamily assets. It also focuses on providing lifestyle amenities and upgraded living spaces to low and moderate income renters in the Southeastern United States and Texas. The company was founded on September 19, 2014 and is headquartered in Dallas, TX.
