There’s a lot to be optimistic about in the Financial sector as 3 analysts just weighed in on Seacoast Banking Corporation Of Florida (SBCF), New Residential Inv (NRZ) and Elevate Credit Inc (ELVT) with bullish sentiments.
Seacoast Banking Corporation Of Florida (SBCF)
B.Riley FBR analyst Steve Moss reiterated a Buy rating on Seacoast Banking Corporation Of Florida yesterday and set a price target of $30. The company’s shares closed yesterday at $27.36.
Moss commented:
“Seacoast Banking Corp. of Florida’s (SBCF—Buy, $30 PT) 2Q19 results were marked by greater- than-expected NIM compression, resulting in lower-than-expected NII. Positively, results also showed management’s execution of planned cost saves and ongoing operational efficiency initiatives as expenses declined nearly 8% LQ, which we believe bodes well for future results. This combined with the continued hiring of commercial lending officers, supports a favorable outlook despite near-term NIM pressure as a result of the inverted curve and Federal Reserve rate cuts. Business prospects remain strong given ongoing market disruption from M&A, the favorable Florida business environment, and management’s focus on internal improvements and efficiency.”
According to TipRanks.com, Moss is a 3-star analyst with an average return of 1.1% and a 52.0% success rate. Moss covers the Financial sector, focusing on stocks such as Zions Bancorporation National Association, Bridgewater Bancshares Inc, and Meta Financial Group.
Currently, the analyst consensus on Seacoast Banking Corporation Of Florida is a Moderate Buy with an average price target of $29.50.
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New Residential Inv (NRZ)
In a report released yesterday, Timothy P. Hayes from B.Riley FBR reiterated a Buy rating on New Residential Inv, with a price target of $18.50. The company’s shares closed yesterday at $15.68.
Hayes said:
“We reiterate our Buy rating and $18.50 price target on shares of New Residential Investment Corp. (NRZ) following 2Q19 results that demonstrated the stability of the company’s diversified investment platform. As mortgage rates rallied over 30 bps in the quarter and ~100 bps from 2018 highs, book value per share declined by a modest -1.5% as the MSR markdown was offset by write-ups in the resi mortgage and RMBS portfolios. Management noted on its conference call that it has fully hedged its MSR and believes a 25-bp decline in interest rates would actually have a $25M (~$0.06/share) positive impact on book value going forward. We also believe a 25-bp cut will lower repo costs and bolster mortgage banking production, which should benefit core EPS and dividend coverage even as prepayment activity accelerates.”
According to TipRanks.com, Hayes is a 4-star analyst with an average return of 7.5% and a 80.0% success rate. Hayes covers the Financial sector, focusing on stocks such as Fidus Investment Corporation, Ready Capital Corporation, and Saratoga Investment Corp.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for New Residential Inv with a $18.50 average price target.
Elevate Credit Inc (ELVT)
In a report released yesterday, Michael Diana from Maxim Group reiterated a Buy rating on Elevate Credit Inc, with a price target of $7. The company’s shares closed yesterday at $4.17, close to its 52-week low of $3.71.
Diana wrote:
“2Q19 results were materially above consensus for adjusted EBITDA and for EPS, but below consensus for revenue. The revenue miss was because ELVT intentionally slowed down loan originations until its new credit models were ready (in June). The earnings beat resulted mainly from a higher gross margin, reflecting strong credit quality and lower customer acquisition costs (CAC).”
According to TipRanks.com, Diana is a 5-star analyst with an average return of 6.9% and a 62.3% success rate. Diana covers the Financial sector, focusing on stocks such as First Savings Financial Group, Manhattan Bridge Capital Inc, and Arlington Asset Investment.
Currently, the analyst consensus on Elevate Credit Inc is a Moderate Buy with an average price target of $5.50, implying a 31.9% upside from current levels. In a report issued on July 15, BTIG also initiated coverage with a Buy rating on the stock with a $6 price target.
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