Analyst Ki Bin Kim from Truist Financial maintained a Hold rating on Safehold and decreased the price target to $16.00 from $18.00.
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Ki Bin Kim has given his Hold rating due to a combination of factors including adjustments in earnings estimates and valuation metrics. The analyst has revised the earnings per share (EPS) estimates for Safehold, slightly increasing them for both 2025 and 2026 based on assumptions of lower equity raises and increased fundings. Despite these positive adjustments, the price target has been reduced from $18 to $16, reflecting a recalibration of the discounted cash flow (DCF) value and net asset value (NAV) per share.
Kim’s valuation approach incorporates a discount rate of 8.2% and a terminal growth rate of 1.9%, alongside a cap rate of 4.9% for NAV calculations. The valuation of Safehold’s caret units at $234 million also plays a role in the overall assessment. These elements suggest a balanced outlook, leading to the Hold rating as the stock’s current market conditions and future projections do not strongly indicate a buy or sell recommendation.
Bin Kim covers the Real Estate sector, focusing on stocks such as Cubesmart, Public Storage, and SmartStop Self Storage REIT, Inc.. According to TipRanks, Bin Kim has an average return of 7.1% and a 61.25% success rate on recommended stocks.