Mortgage REIT Angel Oak climbs as "buy" ratings pile in
12/07/2021 17:53
** Angel Oak Mortgage Inc AOMR.N shares up 2.6% at $17.53
on Mon as multiple brokerages issue bullish reports after its
IPO last month
** Mortgage REIT's stock debuted on Jun 17 at $18.75 and has
failed to trade at $19 IPO price since co raised ~$137 mln by
selling 7.2 mln shares urn:newsml:reuters.com:*:nBw6xhZya
** Wells Fargo initiates at "overweight", says $23 PT
represents 1.2x premium to Q1 2022E book value/sh ($19.24),
which is reasonable given strong growth opportunity, dividend
yield potential and pure play non-QM (qualified mortgage)
platform
** UBS starts at "buy" and $19.50 PT, says non-QM bonds are
less rate sensitive, suggesting better book value stability than
equivalent Agency REITs
** BofA and B. Riley also start with "buy" ratings, while
Oppenheimer initiates at "outperform"
** AOMR externally managed by Atlanta-based credit manager
Angel Oak Capital Advisors
** CPP Investments (Canada Pension Plan) purchased ~2.1 mln
shares at the IPO price in concurrent private placement for ~8%
stake
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 1-332-219-1430))