Analyst Derek Hewett from Bank of America Securities reiterated a Hold rating on Starwood Property and keeping the price target at $20.00.
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Derek Hewett’s rating is based on several factors impacting Starwood Property’s financial performance. The recent acquisition of a net lease portfolio and excess liquidity have diluted earnings, although the overall quarterly performance was decent. While there were some concerns about credit quality due to a few underperforming assets, the potential losses are expected to be minimal. On a positive note, the company has shown strong commercial lending volumes and record infrastructure lending, along with solid revenue growth from its special servicing business.
Despite these strengths, the company’s earnings per share fell short of expectations, and the book value per share saw a slight decrease. However, the dividend remains stable, and the company maintains a strong liquidity position. Given these mixed factors, Hewett believes that the risk and reward are balanced, leading to a Hold rating with a price objective of $20.
According to TipRanks, Hewett is a 3-star analyst with an average return of 4.4% and a 54.35% success rate. Hewett covers the Financial sector, focusing on stocks such as Carlyle Secured Lending Inc, Blue Owl Capital, and Kayne Anderson BDC, Inc..
In another report released on November 11, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $19.50 price target.