Analysts Offer Insights on Financial Companies: Chimera Investment Corp. (NYSE: CIM), RLJ Lodging (NYSE: RLJ) and Hannon Armstrong (NYSE: HASI)

By Carrie Williams

Companies in the Financial sector have received a lot of coverage today as analysts weigh in on Chimera Investment Corp. (NYSE: CIM), RLJ Lodging (NYSE: RLJ) and Hannon Armstrong (NYSE: HASI).

Chimera Investment Corp. (NYSE: CIM)

In a report released today, Mark Devries from Barclays reiterated a Hold rating on Chimera Investment Corp. (NYSE: CIM), with a price target of $16. The company’s shares opened today at $16.39, close to its 52-week high of $16.98.

Devries noted:

“We are modestly increasing our price target to $16 (from $15 previously).”

According to TipRanks.com, Devries is a 1-star analyst with an average return of -3.7% and a 62.2% success rate. Devries covers the Financial sector, focusing on stocks such as Discover Financial Services, Fidelity National Financial, and Arlington Asset Investment.

Chimera Investment Corp. has an analyst consensus of Hold, with a price target consensus of $17.

RLJ Lodging (NYSE: RLJ)

In a report issued on November 4, Felicia Hendrix from Barclays reiterated a Sell rating on RLJ Lodging (NYSE: RLJ), with a price target of $20. The company’s shares opened today at $19.63.

Hendrix said:

“We had long been concerned about Austin given substantial supply growth and tough comps, and the 6.2% 3Q RevPAR decline in that market illustrates the challenge there. Looking into 2017, RLJ does benefit from a few items, including the ramp of the Courtyard San Francisco, the expected closing for renovation of the Waldorf-Astoria in New York, strong demand trends in Washington, D.C. and the Houston Super Bowl. However, supply/demand issues in New York, Houston and Austin, as well as the convention center renovation in Louisville, remain headwinds.”

According to TipRanks.com, Hendrix is a 1-star analyst with an average return of -3.4% and a 53.4% success rate. Hendrix covers the Services sector, focusing on stocks such as Pinnacle Entertainment, Las Vegas Sands, and Royal Caribbean.

RLJ Lodging has an analyst consensus of Hold, with a price target consensus of $24.

Hannon Armstrong (NYSE: HASI)

In a report issued on November 4, Jon Windham from Barclays reiterated a Buy rating on Hannon Armstrong (NYSE: HASI), with a price target of $27. The company’s shares opened today at $20.12.

Windham wrote:

“We expect HASI’s diversified portfolio of energy efficiency, wind and solar investments to enable relatively stable growth given our expectation for a downturn in 2017 U.S solar demand. We maintain our OW recommendation and continue to see HASI as an attractive way to gain exposure to increasing U.S. investment to reduce GHG emission. Our $27 PT is based on a target dividend yield of 5.5% on 2018E DPS of $1.48. See our 9 Sept 2016 initiation: Initiate at OW: Calmer waters Core 2017E EPS +12% y/y: We have made very modest revisions our 2016E- 2018E adj. EPS to $1.19/$1.33/$1.47 from $1.18/$1.33/$1.46 after incorporating 3Q16 actual results. In addition, we have also rolled out our 2019 estimate for 2019E adj. EPS of $1.61, implying a 2017-2019 3-yr CAGR of +10.4%. Liquidity virtuous cycle: On 3 November HASI announced an equity offering of up to 4mn shares, approximately a 9% increase in shares outstanding. We expect HASI to have $200mn of new equity demands per annum. In our view, increased equity enables growth and increases liquidity in the shares, opening up the HASI story to a wider investor base and a potential re-rating in valuation. Risks: Key downside risks to our OW rating include HASI’s exposure to changes in government support for renewable energy as well as energy efficiency policy changes due to Presidential action following the outcome of the U.S. election.”

According to TipRanks.com, Windham is ranked 0 out of 5 stars with an average return of -17.4% and a 29.6% success rate. Windham covers the Industrial Goods sector, focusing on stocks such as Waste Connections Inc., Republic Services, and Waste Management.

Hannon Armstrong has an analyst consensus of Strong Buy.