UBS Adjusts Target on Angel Oak REIT (AOMR) Following Portfolio and Cost Optimizations

Core Viewpoint - Angel Oak Mortgage REIT, Inc. (NYSE:AOMR) is recognized as one of the promising dividend stocks to consider for investment [1] Group 1: Analyst Ratings and Price Target - UBS analyst Doug Harter has reduced the price target for Angel Oak Mortgage REIT from $10 to $9.75 while maintaining a Neutral rating [2] Group 2: Financial Performance - In Q3 2025, Angel Oak Mortgage REIT reported a 13% increase in net interest income compared to the previous year and a 2% sequential improvement [4] - Operating expenses decreased by 13% from Q3 2024 and were 5% lower than the previous quarter, highlighting effective cost management [4] Group 3: Business Strategy and Developments - The company noted a favorable business environment in Q3 2025, allowing for active portfolio growth and the retirement of two legacy securitizations, with capital redirected into higher-yielding investments [3] - A new credit facility was established post-quarter at favorable rates, which broadened the lender base and reduced interest costs [3] Group 4: Company Overview - Angel Oak Mortgage REIT focuses on acquiring and investing in first-lien non-QM loans and other mortgage-related assets within the US market [5]