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Investing.com - JMP Securities has lowered its price target on MFA Financial Inc . (NYSE:MFA) to $11.00 from $12.00, while maintaining a Market Outperform rating on the stock. Currently trading at $9.32, the company offers a substantial 15.45% dividend yield, according to InvestingPro data.
The new price target represents 0.81 times current estimated book value, according to JMP analyst Steven DeLaney.
The previous price target was based on a price-to-book value ratio of 0.91 times, the analyst noted in his commentary.
Despite the reduction in price target, JMP has kept its Market Outperform rating on the mortgage real estate investment trust unchanged.
MFA Financial specializes in residential mortgage assets, including whole loans, mortgage-backed securities, and credit risk transfer securities. With a market capitalization of $957 million, the company maintains strong liquidity with a current ratio of 38.19. Discover more detailed insights and metrics in MFA’s comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, MFA Financial Inc. reported its Q1 2025 financial results, showcasing a mixed performance. The company missed earnings per share (EPS) forecasts, posting $0.29 compared to the anticipated $0.35, but exceeded revenue expectations with $81.9 million against the forecasted $70.3 million. Despite the revenue beat, the economic book value saw a slight decline of less than 1% since December. The company declared an increased dividend of $0.36 per share, reflecting confidence in its portfolio’s earnings potential. Additionally, net interest income grew to $57.5 million, contributing to revenue growth.
In other developments, Jones Trading initiated coverage on MFA Financial with a Hold rating. The firm acknowledged MFA’s diversified portfolio and strategic financing approach but expressed concerns about potential credit issues, particularly in the transitional business purpose lending (BPL) portfolio. These issues could impact earnings and book value in the coming quarters. The company remains optimistic about its diversified portfolio and targets mid-to-high teen returns on equity across asset classes.
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