Angel Oak Mortgage REIT's Q1 2025 Earnings Exceed Expectations

UBS analyst Doug Harter has raised Angel Oak Mortgage REIT's (AOMR) price target to $10.50 from $10, maintaining a Neutral rating. The average target price for AOMR is $11.83, implying an upside of 22.50% from the current price of $9.66. AOMR reported an 18% growth in net interest income and a 29% decrease in operating expenses compared to Q1 2024. The company completed the AOMT 2025-4 securitization, which reduced repurchase debt.

UBS analyst Doug Harter has adjusted the price target for Angel Oak Mortgage REIT (AOMR) to $10.50 from the previous $10, while maintaining a Neutral rating. This move reflects a modest increase in confidence regarding the stock's potential performance in the near future [2].

The average target price for AOMR, as per analysts polled by FactSet, is $11.83, implying an upside of 22.50% from the current price of $9.66 [1]. The company reported an 18% growth in net interest income and a 29% decrease in operating expenses compared to Q1 2024. The completion of the AOMT 2025-4 securitization has also reduced repurchase debt, freeing up capital for new loan purchases [2].

The company's GAAP book value increased by 5.2% to $10.70 as of March 31, 2025, driven by unrealized gains and portfolio earnings growth. Distributable earnings were $4.1 million, or $0.17 per diluted common share, with a declared dividend of $0.32 per share payable on May 30, 2025 [2].

Despite these positive developments, the company faced challenges such as a 35 basis point increase in the percentage of loans 90-plus days delinquent and a decrease in prepayment speeds for RMBS and securitized loan portfolios. The securitization market's volatility also impacted execution levels and yields [2].

The consensus recommendation from 7 brokerage firms is currently 2.0, indicating an "Outperform" status, with an average one-year price target of $13.50 and a low estimate of $10.00 [2].

References:
[1] https://www.marketscreener.com/quote/stock/ANGEL-OAK-MORTGAGE-REIT-I-123731298/news/UBS-Adjusts-Price-Target-on-Angel-Oak-Mortgage-REIT-to-10-50-From-10-Maintains-Neutral-Rating-50480333/
[2] https://www.gurufocus.com/news/2969001/angel-oak-mortgage-reit-aomr-target-price-increased-by-ubs-analyst-aomr-stock-news