RBC Capital analysts lowered their price target on MFA Financial, Inc. (NYSE:MFA) to $10 from $13, driven by a downwardly revised BVPS estimate due to MBS spread widening and a lower than previous target multiple given the macro backdrop.
The analysts updated their estimates based on revised assumptions on funding costs and asset yields, due to recent market conditions. 2022 distributable earnings per share estimate were revised to $2.01 (from $2.03 previously) and the 2023 distributable earnings per share estimate were revised to $1.83 (from $1.90 previously).
Their revised 2022 book value per share estimate was moved to $15.14 (from $16.21 previously) and includes an assumption for a roughly 7% negative impact from widening mortgage spreads.