Buy Rating for ACRES Commercial Realty: Promising Financial Performance and Strategic Value Enhancement

JMP Securities analyst Chris Muller reiterated a Buy rating on ACRES Commercial Realty (ACR – Research Report) today and set a price target of $22.00.

Chris Muller has given his Buy rating due to a combination of factors that highlight the potential for ACRES Commercial Realty’s stock to appreciate. The company’s recent financial performance, particularly in the fourth quarter of 2024, showed promising results with a significant gain from the sale of a real estate owned (REO) property, which contributed to an increase in the book value per share. This growth in book value is seen as a positive indicator for future price appreciation.
Additionally, ACRES Commercial Realty’s strategic use of tax loss carryforwards is expected to enhance long-term value, despite the current lack of quarterly dividends. The company’s efforts to repurchase shares have also positively impacted the book value, further supporting the Buy rating. The loan portfolio, although slightly reduced, remains robust, and the management’s expectation of increased property sales in the coming quarters suggests a proactive approach to capital redeployment and value creation.

According to TipRanks, Muller is a 4-star analyst with an average return of 16.9% and a 75.68% success rate.