Citizens reiterated a Market Outperform rating on MFA Financial Inc. and held its price target at $11.00 per share. The firm highlighted what it sees as a material valuation disconnect: MFA is trading at 0.55 times book value, a multiple that, in Citizens’ view, signals the stock is inexpensive relative to its asset base.
The reiteration arrives in advance of MFA’s fourth-quarter 2025 earnings report, which is scheduled for release Wednesday morning, February 18. Citizens noted the timing of the update while leaving its $11.00 target unchanged; that price target equates to 0.79 times current estimated book value, according to the firm’s calculations.
Citizens pointed to recent operating and financial indicators when explaining its stance. MFA has been profitable over the last twelve months, with a price-to-earnings ratio of 11.58, and InvestingPro assigns the company a "GOOD" overall financial health score. Those metrics inform the firm’s view of MFA as a deep-value opportunity within the residential credit mortgage real estate investment trust sector.
In published comments, Citizens analyst Mikhail Goberman said: "After MFA Financial, Inc. (MFA) reported third-quarter 2025 earnings in early November, we once again highlight what we consider to be one of the best deep-value stories in the residential credit mortgage REIT space." The remark reiterates Citizens’ longer-running assessment of MFA’s valuation profile following the company’s third-quarter results.
Alongside the rating reiteration, MFA Financial has declared a regular quarterly cash dividend of $0.36 per share of common stock. The company will distribute that dividend to stockholders on January 30, 2026, with a record date set for December 31, 2025. Citizens and MFA both point to the dividend as a component of shareholder returns.
MFA operates primarily as a residential credit mortgage real estate investment trust. The company continues to concentrate its balance sheet on investments in residential mortgage loans and other real estate assets. In addition, MFA is active in originating and servicing business-purpose loans through its subsidiary, Lima One Capital. Those initiatives are presented as part of MFA’s strategic focus in the real estate finance market.
Citizens’ maintained rating and price target, together with the disclosed valuation multiples and the declared dividend, frame the firm’s thesis heading into MFA’s upcoming earnings report. The market will learn more when MFA issues its fourth-quarter 2025 results on February 18.
Summary
Citizens retained a Market Outperform rating and an $11.00 price target on MFA Financial, pointing to a low trading multiple versus book value and noting recent profitability and a "GOOD" financial health score from InvestingPro. The firm reiterated its view ahead of MFA’s Q4 2025 earnings release and following the company’s declaration of a $0.36 quarterly dividend.
Key points
- Citizens keeps Market Outperform on MFA with an $11.00 price target, equal to 0.79 times estimated book value.
- MFA trades at 0.55 times book value and has a twelve-month P/E of 11.58; InvestingPro assigns a "GOOD" overall financial health score.
- MFA declared a $0.36 quarterly cash dividend payable January 30, 2026, with a record date of December 31, 2025; the company remains focused on residential mortgages and business-purpose lending through Lima One Capital.
Risks and uncertainties
- The outcome of MFA’s fourth-quarter 2025 earnings report, scheduled for February 18, could alter investor perceptions and affect valuation metrics - a near-term corporate reporting risk to the financial and real estate sectors.
- Persistent market skepticism or continued compression of book-value multiples could keep the share price depressed despite the company’s declared dividend and reported profitability - a market-valuation risk affecting REIT and mortgage finance investors.