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On Wednesday, JMP Securities analyst Chris Muller confirmed a Market Outperform rating alongside a $16.00 price target for Greystone Housing Impact Investors LP (NYSE:GHI), subsequent to the company’s first-quarter earnings release. The $266.5 million market cap company, currently trading at $11.39, sits between its 52-week range of $10.12 to $15.80. According to InvestingPro data, the stock appears fairly valued based on its proprietary Fair Value model. Muller highlighted Greystone’s ongoing involvement in the affordable housing sector, with consistent capital deployment throughout its business lines. The firm’s investments in joint ventures are expected to contribute positively to earnings, with an anticipated $0.08 per Beneficial Unit Certificate (BUC) gain in the second quarter following the sale of Vantage at Helotes. Notably, InvestingPro analysis reveals the company has maintained dividend payments for 40 consecutive years, with a current impressive yield of ~13%.
The analyst’s price target is anchored on a 9.3% yield requirement applied to the forecasted next twelve months (NTM) total BUC distributions of $1.48. This projection includes only the base rate of $0.37 and corresponds to 1.27 times the book value per share as of December 31, which was $12.59. Achieving the price target could yield a total return of approximately 54% for investors, combining a 40.5% price appreciation and a 13.0% cash distribution, based on Greystone’s closing price of $11.39 on May 7.
Greystone Housing Impact Investors hosted their earnings call for the first quarter of 2025 on Wednesday, where they likely discussed these financial details and their strategies moving forward in the affordable housing market.
In other recent news, Greystone Housing Impact Investors reported its first-quarter 2025 earnings, which showed a mixed financial performance. The company reported earnings per share of $0.11, missing the projected $0.24. However, revenue was a bright spot, coming in at $25.12 million, surpassing the expected $22.83 million. Notably, Greystone Housing’s unrestricted cash increased significantly to $51.4 million, which may provide some financial flexibility moving forward. The company is also focusing on strategic growth through joint ventures, particularly with BlackRock (NYSE:BLK), with a plan to deploy $450 million in lending capacity. Additionally, Greystone Housing completed property sales, including Vantage at Tomball and Vantage at Halodis, contributing to its cash reserves. Analysts from firms such as Jones Trading and Citizens JMP Securities are closely monitoring the company’s joint venture activities and potential impacts from federal budget changes. Despite the earnings miss, the company remains optimistic about future EPS improvements.
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