MFA Financial sinks as RBC cuts PT citing unfavorable economic conditions

MFA Financial

05/10/2022 16:50

** Shares of real estate investment trust MFA Financial Inc
 MFA.N  down ~10% at $7.7
    ** RBC cuts PT to $10 from $13 and trims its 2022 EPS
estimates, to factor in updated assumptions on funding costs and
asset yields given recent market conditions
    ** Brokerage cuts 2022 book value per share est., expecting
a roughly 7% negative impact from widening mortgage spreads
    ** Brokerage expects somewhat less favorable outlook for
mortgage credit due to a potential economic slowdown
    ** MFA will release Q3 earnings on November 3
    ** Two of six brokerages rate the stock "buy", and remaining
four rate "hold"; their median PT is $15
    ** Stock has fallen ~57% YTD
 (Reporting by Shashwat Chauhan in Bengaluru)
 ((Shashwat.Chauhan@thomsonreuters.com))