
CHMI Stock Forecast & Price Target
CHMI Analyst Ratings
Bulls say
Cherry Hill Mortgage Investment Corp (CHMI) has demonstrated a strong performance in its Residential mortgage-backed securities (RMBS) segment, achieving a weighted average asset yield of 5.33%, indicative of its strategic positioning among agency mREITs. The company's prudent leverage management, with a current ratio of 4.2x, combined with its nimbleness and superior portfolio metrics, suggests robust potential for generating gross return on equity (ROE) that could support sustainable dividends. Additionally, despite short-term dilution concerns associated with capital structure improvements, CHMI is well-positioned for long-term growth, particularly as it anticipates benefiting from favorable market conditions following potential Federal Reserve rate cuts.
Bears say
Cherry Hill Mortgage Investment Corp has demonstrated a decline in its financial metrics, with consolidated leverage decreasing from 4.42x to 4.15x, indicating a cautious approach to balance sheet management amid concerns over cash flow stability. The company has experienced a decrease in its RMBS portfolio's book value, dropping to $1 billion from $1.08 billion, compounded by the risk of material inaccuracies in management's prepayment projections, which could adversely impact the value of the mortgage servicing rights (MSR) portfolio. Additionally, the downward revision of the FY24 core EPS estimate from $0.90 to $0.75 signals potential challenges in generating sustainable earnings growth in the near term.
This aggregate rating is based on analysts' research of Cherry Hill Mortgage and is not a guaranteed prediction by Public.com or investment advice.
CHMI Analyst Forecast & Price Prediction
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