RBC lowers Target Price a bit First National Financial Price Target Lowered to $41 at RBC
2022-04-27 10:16:36 AM ET (MT Newswires)
10:16 AM EDT, 04/27/2022 (MT Newswires) -- RBC Capital Markets lowered its price target on First National Financial Corp. (FN.TO) to $41 from $43.
Analyst Geoffrey Kwan maintained a Sector Perform rating on shares of the Toronto-based residential mortgage lender following its first quarter results.
Kwan said FN's earnings per shares came in below his forecast, primarily due to higher-than-expected expenses, and a funding mix that defers a portion of earnings to future periods.
"Originations were slightly below forecast, with residential originations slightly above our forecast and commercial originations below our forecast," the analyst said in a note to clients.
"While the housing market is slowing, we think FN can still generate significant free cash flow to support continued dividend increases (current dividend yield of 6.2%)," Kwan said.