Analyst Michael Diana of Maxim Group maintained a Buy rating on Ellington Financial (EFC – Research Report), retaining the price target of $14.50.
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Michael Diana has given his Buy rating due to a combination of factors that highlight Ellington Financial’s strong positioning and potential for future returns. Despite a slight decrease in book value and earnings per share being lower than previous estimates, Diana maintains a positive outlook on Ellington Financial’s stock, attributing this to the company’s sustainable dividend yield and its ability to preserve book value in challenging market conditions.
He emphasizes that Ellington Financial’s shares are currently undervalued compared to their book value, trading at 0.93 times the current book value. Diana sets a price target of $14.50, which suggests a potential appreciation of the stock price and a favorable total return outlook. The company’s strategic focus on credit assets and its proven risk management capabilities further reinforce his confidence in the stock’s long-term prospects, maintaining it as a top pick among mortgage REITs.
EFC’s price has also changed slightly for the past six months – from $12.040 to $12.650, which is a 5.07% increase.