NRZ - Credit Suisse lifts New Residential target price on operating profit growth
Credit Suisse analyst Douglas Harter lifts his price target for New Residential ([[NRZ]] +0.8%) to $11 from $10 as he sees continued operating company profitability driving book value growth.Points out that NRZ recently traded at 75% of book value vs. 82% for the credit focused mREITs "despite the value of the operating businesses.""This combined with the current 7.3% dividend yield results in an attractive total return opportunity for shares," Harter writes in a note.Adjusts 2020 core EPS estimate to $1.57 from $1.61 and 2022 core EPS estimate to $1.60 from $1.50; 2021 estimate of $1.65 is unchanged.Trims Q3 2020 core EPS estimate to 35 cents from 39 cents due to elevated prepayment speeds in the MSR & Servicer Advance segment.See New Residential's price/book (trailing twelve months) over the past year:
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Credit Suisse lifts New Residential target price on operating profit growth