In a report released yesterday, Michael Diana from Maxim Group maintained a Buy rating on Manhattan Bridge Capital Inc (LOAN), with a price target of $7.50. The company’s shares closed yesterday at $6.19.
Diana said:
“In 2Q19, real estate activity in LOAN’s main New York City market area remained slow, and pricing for “hard-money” mortgage loans weakened. Even so, the company almost covered its dividend. Management continues to exercise the same prudent underwriting discipline that has served it so well in the past. Consequently, its record of no loan defaults is intact. Based on our new 2020 EPS estimate of $0.48 (down from $0.50), we maintain our price target of $7.50. Our price target equates to a 2020E P/E multiple of 15.6x (15.0x previously), which is inline with or modestly above 2020E P/E multiples of relevant residential mortgage REITs and mortgage-focused banks. We believe LOAN deserves to trade at a premium P/E (see below). Our Buy rating reflects our confidence in LOAN’s long-term ability to combine solid loan originations with pristine credit quality.”
According to TipRanks.com, Diana is a 5-star analyst with an average return of 5.7% and a 57.4% success rate. Diana covers the Financial sector, focusing on stocks such as Arlington Asset Investment, Westamerica Bancorporation, and Pennantpark Floating Rate.
Currently, the analyst consensus on Manhattan Bridge Capital Inc is a Moderate Buy with an average price target of $7.50.
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The company has a one-year high of $6.90 and a one-year low of $5.34. Currently, Manhattan Bridge Capital Inc has an average volume of 19.77K.
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Manhattan Bridge Capital, Inc. engages in originating, servicing, and managing a portfolio of first mortgage loans. It offers short-term, secured, non-banking loans to real estate investors to fund their acquisition and construction of properties located in the New York Metropolitan area.
