In Brief: 'Buy' Rating for Aames, a Subprime Lender

Montgomery Securities analyst Joseph Jolson has initiated coverage of Aames Financial Corp. with a "buy" rating.

The Los Angeles-based lender specializes in loans to borrowers with poor credit ratings.

Mr. Jolson is expecting the company to earn $2.31 a share in fiscal year 1997 and to average 20% earnings growth per share annually for the next three years.

His expects the stock to reach $45 within the next 12 months, about a 32% increase over current levels.

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