Analysts have been eager to weigh in on the Financial sector with new ratings on James River Group (JRVR), NY Community (NYCB) and Gladstone Commercial Corp (GOOD).
James River Group (JRVR)
B.Riley FBR analyst Randy Binner maintained a Hold rating on James River Group yesterday and set a price target of $40. The company’s shares closed yesterday at $47.83, close to its 52-week high of $48.78.
Binner observed:
“James River Group (JRVR—Neutral, $40 PT) reported 2Q19 operating EPS of $0.66 versus B. Riley FBR/street estimates of $0.63/$0.65. Consolidated gross premiums were +29.5% compared to our +8.4% forecast and the combined ratio of 95.0% beat our forecast by 1.6%. There was minor net adverse reserve development, net investment income was lower than expected, and the tax rate was elevated due to reserve items. Despite all of this, the net result was ahead of expectation given the good reported combined ratio. The company reported an underlying loss ratio of 72.7%, compared to our 75.3%. There was again solid growth in the E&S segment (+57%), with specialty admitted lines (-7.9%).”
According to TipRanks.com, Binner is a 5-star analyst with an average return of 13.4% and a 69.1% success rate. Binner covers the Financial sector, focusing on stocks such as American Equity Investment Life, Colony Credit Real Estate Inc, and Health Insurance Innovations.
The word on The Street in general, suggests a Hold analyst consensus rating for James River Group with a $40 average price target.
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NY Community (NYCB)
B.Riley FBR analyst Steve Moss reiterated a Buy rating on NY Community yesterday and set a price target of $13. The company’s shares closed yesterday at $11.53.
Moss observed:
“We reiterate our Buy rating for Bancorp (NYCB) as lower funding costs from expected Federal Reserve interest rate cuts should drive NIM expansion and an improved dividend payout ratio in future periods. We estimate NYCB’s NIM should expand by 17 bps over the next four quarters as liabilities reprice lower while earning asset yields are relatively stable. Additionally, while new rent control laws are likely to temper multifamily business active on a macro level, NYCB noted that they are gaining market share as competitors pull back. We believe this should also be supportive of loan spreads in future periods, which is also supportive of NYCB’s NIM outlook. NYCB’s capital position remains strong and credit quality should remain pristine as multifamily loans are well secured even if property prices in NYC decline by 20-30%.”
According to TipRanks.com, Moss is a 3-star analyst with an average return of 1.1% and a 51.2% success rate. Moss covers the Financial sector, focusing on stocks such as Zions Bancorporation National Association, Seacoast Banking Corporation Of Florida, and Bridgewater Bancshares Inc.
Currently, the analyst consensus on NY Community is a Hold with an average price target of $11.67.
Gladstone Commercial Corp (GOOD)
In a report released today, Craig Kucera from B.Riley FBR reiterated a Hold rating on Gladstone Commercial Corp, with a price target of $22. The company’s shares closed yesterday at $21.26.
Kucera commented:
“We are lowering our 2019 AFFO and 2020 core FFO/AFFO estimates for Corporation (GOOD) post 2Q19 results, reported 7/30 AMC, given our expectation for a reduction in rent at an industrial property in which GOOD’s existing tenant is not renewing. While our 2019 core FFO is unchanged at $1.59, we are reducing our 2019 AFFO estimate from $1.60 to $1.58, while reducing our 2020 core FFO/AFFO estimates by $0.02 and $0.04, respectively.”
According to TipRanks.com, Kucera is a 4-star analyst with an average return of 6.1% and a 67.9% 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 Gladstone Commercial Corp is a Hold with an average price target of $22.
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