Wells Fargo analyst Donald Fandetti reiterated a Buy rating on Blackstone Mortgage (BXMT – Research Report) yesterday and set a price target of $22.00.
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Donald Fandetti has given his Buy rating due to a combination of factors that suggest a stable and promising outlook for Blackstone Mortgage. The management team appears confident in maintaining stable credit performance, as evidenced by recent earnings, and is actively working on resolving issues above carrying value. The company’s strategy to increase origination volume and grow its portfolio through 2025, with a focus on multifamily, industrial, and self-storage sectors, further supports this positive outlook.
Moreover, the potential for Federal Reserve rate cuts could benefit their transitional commercial real estate credit, although the company is already managing its most rate-sensitive assets effectively. The international segment of their portfolio, which constitutes 41%, has shown strong credit performance with no historical losses, indicating stability. Additionally, the stock’s attractive dividend yield of 9.7% and its trading at a price-to-book value that compensates for credit risks, along with the strategic advantages from its relationship with the broader Blackstone platform, underpin the Buy rating.
Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of BXMT in relation to earlier this year.