Palantir shares slip premarket despite posting record revenue in third quarter
Investing.com - Piper Sandler has reduced its price target on Arbor Realty Trust (NYSE:ABR) to $10.00 from $11.50 while maintaining an Underweight rating on the stock. This new target sits below InvestingPro’s Fair Value assessment, suggesting the stock may be currently undervalued despite analyst concerns.
The price target adjustment follows a 13% drop in ABR shares during Friday trading, triggered by negative credit migration and a significant 44% sequential decrease in net interest income. The decline in net interest income was attributed to accrued interest reversals and elevated delinquencies. This recent decline contributes to ABR’s 15.42% one-week loss and 23.49% one-year decline, with InvestingPro data indicating the stock is currently in oversold territory based on RSI.
Despite these challenges, Arbor Realty Trust reported earnings per share that exceeded expectations, though this was largely driven by a one-time $48 million gain from the sale of its Lexford Portfolio. Management noted the company has already originated $750 million in agency production in October. ABR remains profitable with a P/E ratio of 12.67 and offers an impressive 11.89% dividend yield, having maintained dividend payments for 14 consecutive years according to InvestingPro data.
Piper Sandler has reduced its earnings estimates for Arbor Realty Trust to $1.06 for 2025 and $1.22 for 2026, down from previous projections of $1.14 and $1.35 respectively. The firm also introduced a 2027 estimate of $1.26 per share.
The new $10 price target is based on approximately 85% of Structured Business book value and roughly 8 times Agency Business earnings, with both multiples unchanged from previous valuations.
In other recent news, Arbor Realty Trust reported its third-quarter 2025 earnings, showcasing an earnings per share (EPS) of $0.35. This figure was notably 50.54% higher than the forecasted EPS of $0.2325. However, the company’s revenue for the same period was $112.43 million, which fell short of the expected $154.86 million, marking a 27.4% miss. This revenue shortfall has raised concerns among investors, particularly as it coincides with an increase in delinquencies. Despite the earnings beat, the revenue miss has drawn significant attention, impacting investor sentiment. Analysts and investors continue to scrutinize these developments to assess Arbor Realty Trust’s financial health and future prospects. These recent updates reflect the ongoing challenges and opportunities facing the company.
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