Barclays Adjusts Estimates on CreXus Investment Corp. (CXS); Expect 9.7% Dividend Yield in 2013
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Price: $13.04 --0%
Rating Summary:
0 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 11 | New: 17
Rating Summary:
0 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 11 | New: 17
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Barclays maintains an 'Equalweight' on CreXus Investment Corp. (NYSE: CXS) price target of $11.00.
Analyst, Ross L. Smotrich, said, "...the company has made substantial investment progress subsequent to quarter end ($125 million QTD with an average yield around 9%). We think this activity should boost return on equity, which ended 2Q12 at 6.2%. That said, we think there remains downside risk to the dividend based on the 2Q12 payout of $0.27ps ($1.08 annualized). We think once the company approaches full deployment of its cash, the annualized dividend should settle in around $0.92-$1.00 range. We estimate a $0.97 dividend in 2013 (9.7% implied dividend yield)."
Smotrich lowers FY12 EPS estimate from $0.92 to $0.86 (FY13 from $1.12 to $1.02) after the company missed Q2 EPS by $0.02, however, he notes that the stock trades at a 17% discount to book value. Smotrich leaves his EW-rating and price target, citing chance of execution risk.
For an analyst ratings summary and ratings history on CreXus Investment Corp. click here. For more ratings news on CreXus Investment Corp. click here.
Shares of CreXus Investment Corp. closed at $10.08 yesterday.
Analyst, Ross L. Smotrich, said, "...the company has made substantial investment progress subsequent to quarter end ($125 million QTD with an average yield around 9%). We think this activity should boost return on equity, which ended 2Q12 at 6.2%. That said, we think there remains downside risk to the dividend based on the 2Q12 payout of $0.27ps ($1.08 annualized). We think once the company approaches full deployment of its cash, the annualized dividend should settle in around $0.92-$1.00 range. We estimate a $0.97 dividend in 2013 (9.7% implied dividend yield)."
Smotrich lowers FY12 EPS estimate from $0.92 to $0.86 (FY13 from $1.12 to $1.02) after the company missed Q2 EPS by $0.02, however, he notes that the stock trades at a 17% discount to book value. Smotrich leaves his EW-rating and price target, citing chance of execution risk.
For an analyst ratings summary and ratings history on CreXus Investment Corp. click here. For more ratings news on CreXus Investment Corp. click here.
Shares of CreXus Investment Corp. closed at $10.08 yesterday.
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