MCAN Mortgage (MKP) has received a new Hold rating, initiated by BMO Capital analyst, Etienne Ricard.
Etienne Ricard has given his Hold rating due to a combination of factors related to MCAN Mortgage’s financial performance and market conditions. The company’s core operations have shown resilience with a focus on maintaining margins and achieving notable loan growth, even in a difficult housing market. Looking ahead to 2025, there is an expectation of earnings growth driven by more favorable monetary policies and the stabilization of spreads.
However, the Hold rating reflects a balanced risk-reward perspective. The stock’s yield is normalizing near its historical average, and while the dividend yield is slightly above the long-term average, it is justified by the company’s performance. Additionally, the company’s capital position remains conservative, and while there is some increase in impaired mortgages, the overall financial health supports a sustainable dividend payout. These factors contribute to the recommendation to hold the stock rather than buy or sell at this time.
Ricard covers the Financial sector, focusing on stocks such as Victory Capital Holdings, Apollo Global Management, and Invesco. According to TipRanks, Ricard has an average return of 24.0% and a 70.53% success rate on recommended stocks.