Finance of America reinstated with Neutral from Outperform at Credit Suisse

Credit Suisse analyst Douglas Harter downgraded Finance of America to Neutral from Outperform with a $2 price target after reinstating coverage of the name following the completion of its sale of its title insurance business. The analyst likes Finance of America’s strategic focus on the reverse mortgage niche, but says that with the full earnings power of the recent AAG acquisition still several quarters, “one can be patient with shares.” The firm does not see near-term valuation support ahead of the company achieving full earnings power.