HomeBanc Dropped To 'Underperform'
Analysts at Friedman Billings Ramsey have downgraded HomeBanc Corp.'s stock to "underperform," saying that the company continues to lose money and that a sale in today's environment "is unlikely."
The company has also lowered its price target for the firm's shares to $2.60 from a previous target of $3.70. The new target is the equivalent of the company's estimated tangible book value at the end of this year.
On Feb. 26, HomeBanc reported a fourth-quarter 2006 loss of $0.19 per share, which was greater than the Wall Street consensus estimate.
"Earnings reflect compression in gain-on-sale margin, shrinking net interest margin and a writedown in deferred tax assets." FBR said it will revisit its price target and rating "once the company can show it can generate a profit and mortgage banking losses are reduced."
HomeBanc has said it intends to exit REIT status. (c) 2007 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com