Northland Securities analyst Michael Grondahl maintained a Buy rating on Medallion Financial (MFIN) today and set a price target of $12. The company’s shares opened today at $7.04, close to its 52-week high of $7.29.
Grondahl observed:
“We believe most of this is taxi medallions and thus skews the progress a little. Management noted $60M of Medallions loans at the bank and $95.9M at corporate. On the call MFIN noted they received $12M of principal payments during the quarter. MFIN mentioned a goal of reducing medallion exposure another 20% in 2019, or down to ~$125M net loans. Management also noted NYC handicapped Medallions were at $154K. In maybe the best sign of an improving market, MFIN noted that 810 medallion transfers took place in 2018 vs. 117 in 2017, highlighting the improving interest in the space. Remember there is about 13K total NYC medallions. Management noted fleet utilization rates continue at over 90%.”
According to TipRanks.com, Grondahl is a top 100 analyst with an average return of 32.3% and a 71.2% success rate. Grondahl covers the Financial sector, focusing on stocks such as Front Yard Residential Corporation, Altisource Portfolio Solutions SA, and Health Insurance Innovations.
Currently, the analyst consensus on Medallion Financial is a Moderate Buy with an average price target of $10, which is a 42.0% upside from current levels. In a report issued on February 21, BTIG also initiated coverage with a Buy rating on the stock with a $10 price target.
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Based on Medallion Financial’s latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $4.7 million. In comparison, last year the company had a net profit of $3.35 million.
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Medallion Financial Corp. is a closed-end, non-diversified management company which engages in lending and investing operations. It focuses on consumer finance portfolio including medallion, secured commercial, and consumer loans, and invests in both marketable and nonmarketable securities.
