Analysts Offer Insights on Financial Companies: New Residential Inv (NYSE: NRZ) and Fannie Mae (Other OTC: FNMA)

Analysts have been eager to weigh in on the Financial sector with new ratings on New Residential Inv (NRZResearch Report) and Fannie Mae (FNMAResearch Report).

New Residential Inv (NRZ)

In a report released today, Timothy P. Hayes from B.Riley FBR reiterated a Buy rating on New Residential Inv, with a price target of $18.50. The company’s shares closed last Monday at $15.06.

Hayes wrote:

“We reiterate our Buy rating and $18.50 PT on shares of New Residential Investment Corp. (NRZ) following Ditech Holding Corp.’s (DHCPQ) announcement of a resolution with the Consumer Creditors’ Committee, which we believe may bring NRZ a step closer to closing its accretive acquisition. In June, NRZ announced that it signed an Asset Purchase Agreement (APA) to acquire $63B UPB of MSRs, $320M of related servicer advances, and select forward mortgage origination/servicing assets as a part of Ditech’s Chapter 11 bankruptcy plan. Ditech’s plan, which included NRZ’s planned purchase of the origination and servicing assets, was then rejected on August 28 as the court did not view the plan to be fair to existing borrowers.”

According to TipRanks.com, Hayes is a 4-star analyst with an average return of 7.0% and a 76.2% success rate. Hayes covers the Financial sector, focusing on stocks such as Fidus Investment Corporation, Ready Capital Corporation, and Saratoga Investment Corp.

Currently, the analyst consensus on New Residential Inv is a Strong Buy with an average price target of $18.67, implying a 25.3% upside from current levels. In a report issued on September 5, BTIG also initiated coverage with a Buy rating on the stock with a $18 price target.

See today’s analyst top recommended stocks >>

Fannie Mae (FNMA)

In a report released today, Randy Binner from B.Riley FBR maintained a Hold rating on Fannie Mae, with a price target of $3. The company’s shares closed last Monday at $3.38.

Binner observed:

“After a busy week on the GSE front, we are increasing our price target for Fannie Mae (FNMA) common equity from $2.00 to $3.00, but maintain our Neutral rating. While the combination of the recent Treasury report, the Fifth Circuit Court decision, and comments from Treasury/ FHFA/HUD are constructive for all shareholders, the equity still faces a wide range of outcomes given significant dilution from a potential recap. The junior preferreds have much less dilution risk and if positive equity value is maintained, it would be constructive for the junior preferreds. This is a speculative call, but we view FNMA common and preferred securities as a call option on a large and increasingly sophisticated financial company that we believe would thrive in the private market.”

According to TipRanks.com, Binner is a 5-star analyst with an average return of 12.2% and a 64.8% success rate. Binner covers the Financial sector, focusing on stocks such as Colony Credit Real Estate Inc, Victory Capital Holdings Inc, and Health Insurance Innovations.

Currently, the analyst consensus on Fannie Mae is a Moderate Buy with an average price target of $4.88.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.