Compass Point Reiterates a 'Buy' on Newcastle Investment (NCT); Capital Deployment Key for Dividend Raise
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Price: $5.42 +0.56%
Rating Summary:
5 Buy, 1 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Rating Summary:
5 Buy, 1 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Trade NCT Now!
Compass Point reiterates a 'Buy' on Newcastle Investment (NYSE: NCT) price target of $9.00.
Analyst, Jason Stewart, said, "... Legacy CDOs continue to produce consistent cash flow, initial excess MSR investments are outperforming original return expectations and the company made considerable progress putting uninvested capital to work late in 2Q12. NCT's relationship with a quality servicer such as Nationstar (NYSE: NSM)(NC) remains a key competitive advantage and one that we expect will result in a higher success ratio in competitive bidding and stronger returns to NCT. While we expect NCT to remain an active participant investing in excesss MSRs, it appears that the pace of deal flow has slowed somewhat. With significant levels of uninvested capital (average of $240mm during 2Q12 and $173mm as of August 7, 2012), we anticipate an increased focus on non-Agency RMBS over the near term."
FY12 EPS estimate lowered to $1.54 and FY13 to $1.34.
For an analyst ratings summary and ratings history on Newcastle Investment click here. For more ratings news on Newcastle Investment click here.
Shares of Newcastle Investment closed at $7.48 yesterday, with a 52 week range of $3.56-$7.70.
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Analyst, Jason Stewart, said, "... Legacy CDOs continue to produce consistent cash flow, initial excess MSR investments are outperforming original return expectations and the company made considerable progress putting uninvested capital to work late in 2Q12. NCT's relationship with a quality servicer such as Nationstar (NYSE: NSM)(NC) remains a key competitive advantage and one that we expect will result in a higher success ratio in competitive bidding and stronger returns to NCT. While we expect NCT to remain an active participant investing in excesss MSRs, it appears that the pace of deal flow has slowed somewhat. With significant levels of uninvested capital (average of $240mm during 2Q12 and $173mm as of August 7, 2012), we anticipate an increased focus on non-Agency RMBS over the near term."
FY12 EPS estimate lowered to $1.54 and FY13 to $1.34.
For an analyst ratings summary and ratings history on Newcastle Investment click here. For more ratings news on Newcastle Investment click here.
Shares of Newcastle Investment closed at $7.48 yesterday, with a 52 week range of $3.56-$7.70.
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