Analysts Are Neutral on These Financial Stocks

By Jason Carr

Analysts fell to the sidelines weighing in on Independence Realty (NYSEARCA: IRT) and Atlantic Capital Bancshares (NASDAQ: ACBI) with neutral ratings,indicating that the experts are neither bullish nor bearish on the stocks.

Independence Realty (NYSEARCA: IRT)

In a report issued on October 28, David Corak from FBR Capital reiterated a Hold rating on Independence Realty (NYSEARCA: IRT), with a price target of $9.50. The company’s shares opened today at $8.30.

Corak noted:

“Independence Realty Trust’s third quarter results were respectable, in our opinion, but the transformational internalization and equity raise largely overshadowed the results. While the company missed the Street on core FFO and lowered guidance (due to the equity raise), the same-store portfolio and the TSRE portfolio posted results above the average of the apartment REITs that have reported thus far. Likewise, IRT maintained its top-line and NOI guidance for both portfolios. Turning back to the internalization, we commend management for pulling the trigger. Beyond the noise, we believe IRT is a better company at the end of the day. However, the company still has its hurdles ahead of it, namely closing the gap to NAV.”

According to TipRanks.com, Corak is a 3-star analyst with an average return of 2.4% and a 45.5% success rate. Corak covers the Financial sector, focusing on stocks such as National Storage Affiliates Trust, Bluerock Residential Growth, and National Retail Properties.

Independence Realty has an analyst consensus of Hold.

Atlantic Capital Bancshares (NASDAQ: ACBI)

FBR Capital analyst Christopher Nolan reiterated a Hold rating on Atlantic Capital Bancshares (NASDAQ: ACBI) on October 28 and set a price target of $16. The company’s shares opened today at $14.40.

Nolan noted:

“ACBI reported 3Q16 operating EPS results of $0.16, below expectations but consistent with 2Q16 trends. Going forward, we believe the key challenges to growing earnings will be expense control and growing loans. ACBI’s Tennessee business has underperformed company expectations, and management now intends to close its TriNet division. Although we believe earnings from this division will be replaced through asset redeployment, this creates a headwind to material earnings growth in 2017. ACBI will also be expanding to Charlotte in 2017 with an expected impact on EPS of $0.04–$0.05 through increased expenses, which we believe will offset and exceed expense savings from the TriNet closure. Asset quality is not currently an earnings issue.”

According to TipRanks.com, Nolan is a 1-star analyst with an average return of -2.3% and a 51.0% success rate. Nolan covers the Financial sector, focusing on stocks such as Hercules Technology Growth Capital, Pennantpark Investment Corp., and 5th St. Asset Management.

Atlantic Capital Bancshares has an analyst consensus of Hold.