Ladder Capital, the Real Estate sector company, was revisited by a Wall Street analyst yesterday. Analyst Tom Catherwood from BTIG maintained a Buy rating on the stock and has a $13.50 price target.
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Tom Catherwood has given his Buy rating due to a combination of factors that demonstrate Ladder Capital’s improving fundamentals and attractive valuation. He highlights that the company has already delivered on key objectives—expanding its loan portfolio, growing earnings and book value in recent quarters, and restoring consistent dividend coverage. Looking ahead to the upcoming quarter, he expects continued strength in loan originations and another period of net portfolio growth, which would further differentiate Ladder from many commercial mortgage REIT peers that are not growing as robustly. In addition, the firm’s investment grade credit ratings and recent S&P upgrade are seen as catalysts for progressively lower funding costs, supporting earnings growth as the balance sheet scales.
Catherwood’s updated estimates reflect higher anticipated interest income, which drives upward revisions to distributable EPS for both 2025 and 2026, even as he models only minor declines in book value per share. He also notes that Ladder’s consistent dividend coverage and improving trajectory could ultimately allow for a dividend increase, reinforcing the stock’s income appeal. From a valuation perspective, the shares trade at a discount to book value and offer a high current yield, while his price target implies modest multiple expansion and a more normalized yield. Taken together, these operational gains, positive earnings revisions, credit-rating tailwinds, and discounted valuation underpin his conviction that Ladder Capital is well-positioned to outperform, justifying the Buy rating and $13.50 price target.
In another report released on January 30, KBW also maintained a Buy rating on the stock with a $12.00 price target.