MFA Financial resumed with an Outperform at Wedbush

Wedbush analyst Jay McCanless resumed coverage of MFA Financial with an Outperform rating and $12 price target. MFA is a mortgage REIT focused on originating and holding both residential whole loans and various forms of bridge/construction/ rehab loans originated by Lima One, a specialist in this arena that was acquired in July 2021. The firm’s price target, rating, and investment outlook are based not on recent GAAP results, which have been adversely impacted by fair value marks taken in the face of rapidly rising rates over the last 18 months, and forced investment sales in 2020, but on the company’s success at rebuilding its business in the face of the challenges outlined throughout the body of this report.