Ellington Financial: UBS maintains Neutral, PT raised to $13.5 from $12.5.

Ellington Financial: UBS maintains Neutral, PT raised to $13.5 from $12.5.

UBS Group has adjusted its target price for Ellington Financial (EFC) to $13.5 from $12.5, while maintaining a 'neutral' rating. This update comes amidst a strong analyst consensus favoring the stock, with six out of six analysts rating EFC as a 'Strong Buy' [2]. Despite the price target increase, UBS's neutral stance reflects a cautious outlook on the stock's future performance.

Ellington Financial reported a robust revenue of $2.59 billion and a net profit of $670 million in the first half of 2025, resulting in a net profit margin of 26%. However, the gross profit margin decreased by 0.7 percentage points due to a 2% decline in the cosmetics business, attributed to product upgrades. Marketing expense ratios improved by 2.4 percentage points, indicating enhanced brand equity and a balanced channel mix [1].

Analysts have been bullish on EFC, with an average 12-month price target of $14.21, representing a 4.18% upside from the current price of $13.64. The highest analyst price target is $15.00, while the lowest is $12.50. Over the past year, EFC has outperformed its overall industry by consistently beating earnings and sales estimates [2].

UBS's neutral rating suggests a moderate level of confidence in EFC's growth prospects. Investors should closely monitor the company's performance and any changes in analyst ratings to make informed decisions.

References:
[1] https://news.futunn.com/en/post/61364033/ubs-group-has-raised-the-target-price-for-mao-geping
[2] https://www.tipranks.com/stocks/efc/forecast