Canaccord Genuity Keeps a Buy Rating on The RMR Group Inc

By Jason Carr

In a report released today, Michael Kodesch from Canaccord Genuity reiterated a Buy rating on The RMR Group Inc (NASDAQ: RMR), with a price target of $72. The company’s shares opened today at $47.40.

Kodesch commented:

“We think there will be minimal expenses involved on the deal, though to be conservative, we use the current 57% run-rate EBITDA margin to calculate additional annualized EBITDA of about $4M. Note, we think this is overly conservative given the operating leverage RMR can employ on this additional AUM. After removing for tax and minority interest, we estimate this translates to about $0.08 of EPS on the current share count. On RMR’s current 2018E consensus PE multiple of 15.0x, that would equate to $1.18 in potential stock upside. Property management fee implications: Historically, RMR has collected roughly a 0.45% annualized property management fee on GOV’s AUM.”

According to TipRanks.com, Kodesch is a 3-star analyst with an average return of 6.0% and a 73.3% success rate. Kodesch covers the Financial sector, focusing on stocks such as Apartment Investment & Management, Preferred Apartment Communities, and NexPoint Residential Trust Inc.

The RMR Group Inc has an analyst consensus of Moderate Buy, with a price target consensus of $60.

The company has a one year high of $55.10 and a one year low of $29.81. Currently, The RMR Group Inc has an average volume of 41.83K.

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RMR Group, Inc. is an alternative asset management company which invests in real estate and involved in the management of real estate related businesses. It provides management services to publicly owned real estate investment trusts and real estate operating companies. The company was founded on May 28, 2015 and is headquartered in Newton, MA.,