Ready Capital price target lowered to $8 from $9.50 at Piper Sandler

Piper Sandler analyst Crispin Love lowered the firm’s price target on Ready Capital to $8 from $9.50 and keeps a Neutral rating on the shares. On Friday after the close, Ready Capital reduced its quarterly dividend by 17% to 25c. For six consecutive quarters, Ready Capital hasn’t covered its dividend with core earnings, the firm notes. In Piper’s Q2 review note, the firm commented that it wouldn’t be surprised to see a cut so near-term earnings could be more in-line with the dividend level. This also marks the third dividend reduction in the past year. For several quarters, management has discussed a plan to recharge earnings and drive 10%+ ROEs, but Piper believes Ready Capital is still a few quarters out from reaching those levels.