Sitting on a Pile of Cash? A C-19 Coronavirus Chaos Casualty Stock with a 100% Northside Potential

$RESI

All during the developments and stabilization of the instant recession from C-19 in Y 2020, 1 Key segment that has remained under pressure has been the REITs. This is true for apartment and mortgage REITs, as well as those tracking eldercare, healthcare, retail and office properties. As with all sell-offs, some REITs have been grossly oversold.

Credit Suisse reinstated Front Yard Residential Corp. (NYSE:RESI) with an Outperform rating.

The firm’s new11 price target is still under its 52 wk 13.28, and represents more than 50% Northside. While one take of the analyst call would be cautious in that this is lower than the firm’s prior 14 price target, another take might be that over 50% Northside expectations is uncommon after a sell-offs of this size.

My work agrees with UBS’ the support is at 6.74, and the Key resistance is at 12.14, a break over 10.81 augurs the filling of the 4 May gap open down and a move back to the December 2019 highs at 13.12. The stock closed Monday at 6.99, +0.94 or 15%. The technical outlook is Neutral with a Bullish bias in here.

Have a healthy day, Keep the Faith!

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Paul Ebeling

Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge. Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he it the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.