FBR Capital Starts Sutherland Asset Management (SLD) at Market Perform
- S&P, Nasdaq hit highs on gains in health, tech stocks
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
- Broadcom Ltd. (AVGO) Tops Q4 EPS by 11c
- Sibanye Gold (SBGL) to Acquire Stillwater Mining Company (SWC) in $2.2B Deal
- Exclusive: ECB rejects Monte Paschi's request for more time to raise cash - source
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
FBR Capital initiates coverage on Sutherland Asset Management (NYSE: SLD) with a Market Perform rating and a price target of $14.00.
Analyst Jessica Levi-Ribner commented, "Having recently gained access to the public market, Sutherland Asset Management (SLD) is well positioned to take advantage of the strong opportunity set in the growing small-balance commercial (SBC) loan market. With just 0.23% share in a market where the 15 largest lenders only account for 22% of market share in total, Sutherland, in our view, stands to realize meaningful earnings growth should it be able to increase originations by only a few basis points. In addition, we believe that with book value stability, dividend growth, and a 24.7% economic return since 4Q13, SLD is a pretty compelling bull story. However, concerns regarding the company's ability to meaningfully increase originations after a slower ramp than originally expected and the long-term profitability outlook of its loans, given falling yields and whether Sutherland has access to sufficient liquidity, put us on the sidelines for now. As such, we are initiating coverage of Sutherland with a Market Perform rating and a $14 price target, which is a 15% discount to book value and takes execution risk into account. Should the company demonstrate that it is able to profitably increase originations, we could quickly become more constructive on the shares."
Shares of Sutherland Asset Management closed at $12.90 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UBS Cuts Price Target on Restoration Hardware (RH) to $34 Following 3Q
- Jefferies Raises Price Target on Finisar (FNSR) to $37 Following 2Q Beat and Raise
- Jefferies Raises Price Target on Broadcom Ltd. (AVGO) to $210 Following 4Q
Create E-mail Alert Related CategoriesAnalyst Comments, New Coverage
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!