Analysts have been eager to weigh in on the Financial sector with new ratings on CatchMark Timber (CTT), Monroe Capital (MRCC) and Community Healthcare Trust (CHCT).
CatchMark Timber (CTT)
In a report released today, Craig Kucera from B.Riley FBR maintained a Buy rating on CatchMark Timber, with a price target of $12. The company’s shares closed yesterday at $9.59.
Kucera noted:
“We reiterate our Buy rating and $12 price target on CatchMark Timber Trust, Inc. (CTT) as shares continue to trade at a deep discount to both our NAV estimate and on a price/FFO multiple basis to peers while underlying fundamentals are improving. While 2Q19 results missed our FFO estimate by $0.02 on a decline in timber sale volume related to wet Southeastern weather, pricing continued to increase YOY and management remains confident in achieving timber sales of 2.2-2.4M tons in 2019. As such, we are reiterating our 2019 FFO estimate of $0.69 but reducing our adjusted EBITDA estimate from $56M to $55M given lower pulpwood pricing assumptions ($14 vs. $15 per ton), offset by better performance from CTT’s Dawsonville Bluffs JV.”
According to TipRanks.com, Kucera is a 4-star analyst with an average return of 5.5% and a 65.1% success rate. Kucera covers the Financial sector, focusing on stocks such as Monmouth Real Estate Investment, NexPoint Residential Trust Inc, and Consolidated-Tomoka Land Co.
Currently, the analyst consensus on CatchMark Timber is a Moderate Buy with an average price target of $12, representing a 25.1% upside. In a report issued on August 5, Citigroup also maintained a Buy rating on the stock with a $12 price target.
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Monroe Capital (MRCC)
B.Riley FBR analyst Timothy P. Hayes reiterated a Hold rating on Monroe Capital today and set a price target of $12.50. The company’s shares closed yesterday at $11.34.
Hayes said:
“We reiterate our Neutral rating and $12.50 price target on shares of Monroe Capital Corp. (MRCC) following 2Q19 results that came in below our expectations but covered the dividend for the twenty-first consecutive quarter. MRCC reported adjusted NII per share of $0.35, missing B. Riley FBR and Street estimates of $0.37 and $0.36, respectively, and covering the $0.35 per share quarterly dividend. During the quarter, the portfolio grew 6% Q/Q while NAV per share declined by 1.2% Q/Q to $12.52, primarily due to $3.1M of unrealized depreciation across familiar credits. On the conference call, we primarily look for more commentary around credit quality, the pace of LMM portfolio growth, and regulatory leverage, which now stands at 1.19x, up materially from 0.99x in 1Q19.”
According to TipRanks.com, Hayes is a 4-star analyst with an average return of 5.5% and a 64.8% 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 Monroe Capital with a $13.25 average price target.
Community Healthcare Trust (CHCT)
B.Riley FBR analyst Bryan Maher maintained a Hold rating on Community Healthcare Trust yesterday and set a price target of $35. The company’s shares closed yesterday at $41.65, close to its 52-week high of $42.32.
Maher said:
“Community Healthcare Trust (CHCT) reported 2Q19 results that came in slightly below our expectations. AFFO/share came in at $0.42, slightly below ours/consensus estimate of $0.43. Adjusted EBITDA (calculated as operating income plus D&A, deferred compensation, among other adjustments) came in at $10.5M, representing 11.0% Y/Y growth, slightly below our estimate of $10.9M, but above the consensus estimate of $10.3M. Total revenue was $14.3M, up 15.4% Y/Y , slightly below our estimate of $14.4M, with rental income (including tenant reimbursements) growing 13.1%. The miss to our estimates was driven primarily by higher-than- expected general and administrative expenses ($1.8M vs. our estimate of $1.6M) combined with slightly higher-than-expected interest expense ($2.3M vs. our estimate of $2.1M).”
According to TipRanks.com, Maher is a 4-star analyst with an average return of 7.2% and a 52.4% success rate. Maher covers the Financial sector, focusing on stocks such as Industrial Logistics Properties Trust, Senior Housing Properties Trust, and Office Properties Income Trust.
Currently, the analyst consensus on Community Healthcare Trust is a Moderate Buy with an average price target of $38.33.
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