Analyst Michael Diana from Maxim Group maintained a Buy rating on Ellington Financial (EFC – Research Report) and keeping the price target at $15.00.
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Michael Diana has given his Buy rating due to a combination of factors that highlight Ellington Financial’s potential for strong returns. Despite a slight decrease in book value, Ellington Financial’s shares are trading at a slight discount relative to their book value, which presents an attractive opportunity for investors. The company’s focus on credit assets and its proven ability to preserve book value during economic downturns further support this positive outlook.
Additionally, the anticipated dividend yield of 11.8% and expected stock price appreciation to a target of $15 suggest a compelling total return potential of approximately 25% over the next year. This combination of a robust dividend yield and potential for price growth makes Ellington Financial a top pick among mortgage REITs, according to Diana’s analysis.
In another report released on April 15, BTIG also maintained a Buy rating on the stock with a $13.50 price target.