B.Riley FBR Reiterates Their Buy Rating on New Residential Inv (NRZ)

By Jason Carr

B.Riley FBR analyst Timothy P. Hayes reiterated a Buy rating on New Residential Inv (NRZResearch Report) yesterday and set a price target of $18.50. The company’s shares closed last Monday at $14.06, close to its 52-week low of $13.63.

Hayes noted:

“We reiterate our Buy rating and $18.50 PT on shares of New Residential Investment Corp. (NRZ) following the announcement that the New York bankruptcy court has rejected Ditech Holding Corp.’s (DHCP) Chapter 11 bankruptcy plan. In June, NRZ announced that it had signed an Asset Purchase Agreement (APA) to purchase $63B UPB of MSRs, $320M of related servicer advances, and select forward mortgage origination/servicing assets. Ditech’s bankruptcy restructuring plan, which included NRZ’s planned purchase of the origination and servicing assets, was rejected. Importantly, NRZ structured the agreement so that it could walk away, penalty free, if required to take on the liability of consumer borrower claims.”

According to TipRanks.com, Hayes is a 4-star analyst with an average return of 5.0% and a 69.7% success rate. Hayes covers the Financial sector, focusing on stocks such as Fidus Investment Corporation, Ready Capital Corporation, and Saratoga Investment Corp.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for New Residential Inv with a $19 average price target, implying a 35.1% upside from current levels. In a report issued on August 22, Raymond James also maintained a Buy rating on the stock with a $19.50 price target.

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The company has a one-year high of $18.75 and a one-year low of $13.63. Currently, New Residential Inv has an average volume of 3.66M.

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New Residential Investment Corp. is a real estate investment trust, which focuses on investing and actively managing, investments related to residential real estate. It operates through the followings segments: Excess Mortgage Servicing Rights (MSRs), MSRs, Servicer Advances, Real Estate Securities, Residential Mortgage Loans, Consumer Loans and Corporate.