Compass Point began coverage on shares of MFA Financial (NYSE:MFA) in a report released on Monday, TheFlyOnTheWall.com reports. The firm issued a buy rating and a $8.50 price objective on the stock.
“MFA is an internally managed mortgage REIT focused on investing in the residential mortgage backed securities (RMBS) sector. The company has one of the longer operating histories in the group and has successfully positioned the balance sheet to benefit from a recovery in housing. With 43.5% of assets invested in non-Agency RMBS (as of 2Q13) and a conservative credit reserve established, we find the current valuation at 94% of estimated book value per share (BVPS) an attractive entry point for investors. Higher interest rates remain a risk for the Agency portfolio and to a lesser extent the non-Agency portfolio, but a manageable one given the portfolio’s concentration in hybrid ARM products. Our top recommendations in the group remain focused on non-Agency credit sensitive mortgage REITs. While the Fed may provide some reprieve from higher rates and wider spreads this week, it is increasingly clear the intermediate trajectory of interest rates is higher.,” the firm’s analyst commented.
MFA Financial (NYSE:MFA) traded down 0.13% during mid-day trading on Monday, hitting $7.51. 289,441 shares of the company’s stock traded hands. MFA Financial has a 52-week low of $6.98 and a 52-week high of $9.59. The stock’s 50-day moving average is $7.45 and its 200-day moving average is $8.51. The company has a market cap of $2.723 billion and a price-to-earnings ratio of 9.47.
Other equities research analysts have also recently issued reports about the stock. Analysts at Wunderlich cut their price target on shares of MFA Financial (NYSE:MFA) from $8.50 to $8.00 in a research note to investors on Tuesday, August 6th. They now have a hold rating on the stock. Separately, analysts at RBC Capital cut their price target on shares of MFA Financial (NYSE:MFA) from $10.00 to $9.00 in a research note to investors on Monday, August 5th. They now have an outperform rating on the stock. Finally, analysts at Keefe, Bruyette & Woods cut their price target on shares of MFA Financial (NYSE:MFA) from $10.00 to $8.50 in a research note to investors on Friday, August 2nd. They now have an outperform rating on the stock.
Three analysts have rated the stock with a hold rating and seven have given a buy rating to the company’s stock. The company has a consensus rating of Buy and a consensus price target of $8.92.
MFA Financial, Inc, is engaged in the business of investing, on a leveraged basis, in residential Agency mortgage-backed securities (NYSE:MFA) and Non-Agency MBS.
