The RMR Group Inc Gets a Hold Rating from Oppenheimer

By Carrie Williams

In a report released yesterday, Chris Kotowski from Oppenheimer maintained a Hold rating on The RMR Group Inc (NASDAQ: RMR). The company’s shares closed yesterday at $76.25, close to its 52-week high of $76.90.

Kotowski said:

“Prior to the benefits of the Tax Act kicking in, we had said that RMR would generate ~$0.49 in EPS per quarter excluding incentive fees. Beginning in F2Q18, or the first calendar quarter in 2018, RMR will get the benefit of a lower tax rate, which will go down from 40.4% in F1Q18 to ~30% for the rest of fiscal 2018 and 26.8% for fiscal 2019 on a GAAP basis. We estimate that it essentially boosts the quarterly EPS run- rate from ~$0.49 to ~$0.55 in F2018 and ~$0.59 in F2019. But at $76 the share price continues to bake in expectations of high future incentive income and a low tax rate, so we remain on the sidelines and would wait for a better entry point.”

According to TipRanks.com, Kotowski is a 5-star analyst with an average return of 9.8% and a 64.6% success rate. Kotowski covers the Financial sector, focusing on stocks such as Eagle Point Credit Company Inc, Great Elm Capital Corporation, and Apollo Global Management LLC.

The RMR Group Inc has an analyst consensus of Hold, with a price target consensus of $61.

Based on The RMR Group Inc’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $221 million and quarterly net profit of $70.66 million. In comparison, last year the company earned revenue of $56.65 million and had a net profit of $6.87 million.

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RMR Group, Inc. is a holding company, which all of its business is conducted by its majority owned subsidiaries. It operates through RMR LLC, and All other operations. The RMR LLC manages real estate related businesses. The All Other Operations segment includes the operations of RMR Inc., RMRM Advisors, Tremont Advisors, and RMR Intl.