New York Mortgage "sector perform," target price reduced

08/19/05 - RBC Capital Markets

NEW YORK, August 19 (newratings.com) - Analyst James Ackor of RBC Capital Markets reiterates his "sector perform" rating on New York Mortgage (NTR), while raising his estimates for the company. The target price has been reduced from $10 to $8.

In a research note published yesterday, the analyst mentions that the company has reported its 2Q GAAP EPS in-line with the estimates and short of the consensus. New York Mortgage witnessed a 40% sequential increase in total originations during the quarter, the analyst says. The company’s interest rate spread is likely to remain compressed in the forthcoming quarters due to increasing borrowing costs, RBC Capital Markets adds. The EPS estimate for 2005 has been raised from $0.22 to $0.24.