Dallas, Texas 09/17/2013 (Financialstrend) – MFA Financial, Inc. (NYSE:MFA) is a self-advised Real estate investment trust (REIT) which is engaged in the business of investing in residential agency and also in non-agency mortgage backed securities (MBS), which is primarily secured by groups of hybrid and adjustable-rate mortgage loans on single family residences. The company generates the income from earning interest and other income on its investments which it uses to distribute to its stockholders.
TheFlyOnTheWall.com report said that analysts at Compass point is now covering shares of MFA Financial, Inc. (NYSE:MFA) in a research note issued on September 16, 2013. Compass point set a “Buy” rating with a target price of $8.50 per share on the stock which suggests a possible upside of 16.28% from the company’s current price.
The company is looking to benefit form a recovery in housing as it has a fruitful position in the balance sheet and it also has one of the longer operating histories. As of 2Q13 the company’s 43.5% assets are invested in non-agency residential mortgage backed securities and established conservative credit reserve, the firm find the current valuation at 94% of estimated book value per share (BVPS) which indicates an eye-catching entry point for investors.
Recently, the company has been weighted in by number of other analysts. On August 6, 2013 in a research note to investors, analysts at Wunderlich have cut their price target to $8.00 per share from $8.50 per share and now they have a “Hold” rating for the stock. Another analyst at RBC in a research note to investors on August 5, 2013 rated the stock with “outperform” and cut their price target from $10.00 to $9.00 per share. Finally on August 2, 2013 analysts at Keefe, Bruyette & woods with an “outperform” rating on the stock cut their price target from $10.00 to $8.50 per share.