Ladder Capital’s Strategic Growth and Investment Grade Milestone: A Buy Recommendation

Analyst Tom Catherwood of BTIG reiterated a Buy rating on Ladder Capital (LADR – Research Report), with a price target of $13.50.

Tom Catherwood has given his Buy rating due to a combination of factors that highlight Ladder Capital’s strategic positioning and growth potential. The recent upgrade of Ladder Capital’s credit rating to investment grade by Fitch is a significant milestone, positioning the company as a leader among commercial mortgage REITs. This upgrade allows Ladder Capital to access lower-cost and more flexible financing, which is crucial as the company shifts its focus towards growth.
The company’s strategic goals, including increasing leverage, expanding its loan portfolio, and growing its quarterly dividend, further support this positive outlook. The return to offensive strategies in the first quarter of 2025, with substantial investments in bridge loans and CMBS securities, indicates a robust growth trajectory. The investment grade rating is seen as a validation of Ladder Capital’s strategy, which is expected to lead to increased net investment income and dividend growth, making it an attractive investment opportunity.

LADR’s price has also changed moderately for the past six months – from $11.700 to $10.230, which is a -12.56% drop .