Citizens JMP lowers Arbor Realty Trust stock price target to $13 on NPL concerns

Published 19/08/2025, 09:56
Citizens JMP lowers Arbor Realty Trust stock price target to $13 on NPL concerns

Investing.com - Citizens JMP lowered its price target on Arbor Realty Trust (NYSE:ABR) to $13.00 from $13.50 while maintaining a Market Outperform rating following the company’s second-quarter 2025 results. According to InvestingPro data, ABR has maintained an impressive 13-year streak of consecutive dividend increases, currently offering a substantial 10.49% yield.

The firm’s analysis came after reviewing Arbor’s Form 10-Q filing and updating its financial models. Citizens JMP noted that Arbor continues to make steady progress working through non-performing loans, with other business lines beginning to show momentum. The company’s strong liquidity position is evidenced by a healthy current ratio of 3.69, indicating robust ability to meet short-term obligations.

The new price target is based on a required yield of 9.2% derived from projected 2025 total dividends of $1.20. The firm’s loss-adjusted Distributable EPS estimate for 2025 falls slightly below the current dividend.

Citizens JMP opted not to use a sum-of-the-parts valuation approach at this time, though it acknowledged "significant platform value" in Arbor’s established Agency multifamily origination and servicing business.

If the firm’s price target and dividend projections are achieved, investors could realize a potential total return of approximately 24%, including a current cash yield of 10.5%. Based on InvestingPro’s Fair Value analysis, the stock appears slightly undervalued at current levels.

In other recent news, Arbor Realty Trust reported its second-quarter earnings for 2025, surpassing market expectations. The company achieved an earnings per share (EPS) of $0.25, exceeding the forecasted $0.23. Additionally, revenue reached $130.41 million, surpassing the expected $129.66 million. These results reflect positively on Arbor Realty Trust’s financial performance. The earnings announcement has drawn attention from investors and analysts alike. Although specific analyst reactions were not detailed, such earnings beats often influence analyst ratings and investor sentiment. Arbor Realty Trust’s recent performance highlights its ability to exceed market projections. These developments are part of the company’s ongoing financial narrative. Investors will be watching closely for any further updates or analyst insights.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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