FBR Capital Starts Sutherland Asset Management (SLD) at Market Perform
- Wall Street falls with financials, other post-election gainers
- The FTC Confirms Antitrust Charges Against Qualcomm (QCOM) for Monopolizing Semiconductor Device Used in Cell Phones
- United Airlines (UAL) Tops Q4 EPS by 5c
- Obama shortens sentence of Manning, who gave secrets to WikiLeaks
- After-Hours Stock Movers 01/17: (SHLO) Higher; (GIMO) (AFAM) (CSX) Lower (more...)
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your 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
- Morgan Stanley Re-Values Hilton Worldwide (HLT) Following Spin-Offs & Reverse Stock Split
- Deutsche Bank Starts Mettler-Toledo (MTD) at Hold
- Deutsche Bank Starts Hologic (HOLX) at Buy
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!