Oppenheimer Believes StoneCastle Financial (NASDAQ: BANX) Won’t Stop Here

By Jason Carr

Oppenheimer analyst Ben Chittenden assigned a Buy rating to StoneCastle Financial (NASDAQ: BANX) yesterday and set a price target of $22. The company’s shares closed yesterday at $20.48, close to its 52-week high of $20.95.

Chittenden commented:

“With the business model humming along, 3Q17 NIE of $0.40 shows roughly where the current steady state of the portfolio pays investors. That said, we don’t think management is sitting idle but instead is looking to find ways to increase portfolio profitability and thus NAV. We continue to believe StoneCastle will eventually trade at NAV or likely a little above as investors continue to give more credit to the high portfolio yield/payout and management’s ability to secure additional profitable asset growth. As the stock price gets above NAV and the funding costs come down, it gives management the ability to be more selective and still earning consistent or incrementally more profitable spreads. We continue to recommend the stock and are raising our PT to $22 from $21.”

According to TipRanks.com, Chittenden is a 2-star analyst with an average return of 0.5% and a 51.8% success rate. Chittenden covers the Financial sector, focusing on stocks such as Sutherland Asset Management Corporation, Discover Financial Services, and Capital One Financial.

Currently, the analyst consensus on StoneCastle Financial is Strong Buy and the average price target is $22.33, representing a 9.0% upside.

In a report issued on November 9, KBW also reiterated a Buy rating on the stock with a $23 price target.

The company has a one-year high of $20.95 and a one-year low of $18.05. Currently, StoneCastle Financial has an average volume of 10.54K.

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