MFA Financial Represents A Core Holding If Housing Market Remains Sustainable

In a report published Friday, Wunderlich Securities analyst Merrill Ross reiterated a Hold rating and $8.00 price target on MFA Financial MFA. In the report, Wunderlich Securities noted, "Hold-rated MFA Financial (MFA) reported 4Q14 EPS of $0.20, in line with dividends and our estimate. MFA posted a total return of 10.8% in 2014, comprised of $0.80 in cash distributions and a $0.06/share increase in BVPS." The report continued, "MFA continues to opportunistically (i.e., slowly) reallocate capital into a credit-sensitive arbitrage, and for investors who believe the recovery in the housing market is sustainable, the stock represents a core holding. Our $8 target is a slight discount to trailing BVPS, because mortgage REITs typically trade at a discount to NAV when monetary policy becomes less accommodative." MFA Financial closed on Thursday at $7.89.