Analyst Tom Catherwood of BTIG maintained a Buy rating on Kkr Real Estate Finance, with a price target of $13.00.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
Tom Catherwood has given his Buy rating due to a combination of factors influencing KKR Real Estate Finance Trust. Despite the challenges faced by the company, such as a net portfolio contraction and loan downgrades, KREF has shown resilience through its strategic initiatives. The company has continued to originate a substantial amount of new loans, which indicates a proactive approach to maintaining its business momentum.
Additionally, KREF’s management has demonstrated adaptability by investing in CMBS B-pieces, which could potentially enhance future returns. Although the company’s dividend coverage is slightly below 100%, the consistent interest collection and stable leverage ratio suggest a solid financial foundation. The analyst is optimistic about KREF’s future prospects, especially with the potential for growth in its origination pipeline and the management’s plans to address current challenges.
Catherwood covers the Real Estate sector, focusing on stocks such as Hudson Pacific Properties, Rithm Property Trust, and Kkr Real Estate Finance. According to TipRanks, Catherwood has an average return of -3.0% and a 40.26% success rate on recommended stocks.
In another report released on July 18, J.P. Morgan also maintained a Buy rating on the stock with a $9.50 price target.