Positive Outlook for Blackstone Mortgage: Buy Rating Affirmed Amid Credit Stability and Strategic Portfolio Expansion

Blackstone Mortgage (BXMT – Research Report), the Real Estate sector company, was revisited by a Wall Street analyst yesterday. Analyst Donald Fandetti from Wells Fargo reiterated a Buy rating on the stock and has a $22.00 price target.

Donald Fandetti has given his Buy rating due to a combination of factors that present a positive outlook for Blackstone Mortgage. The company has shown credit stability, particularly in the office sector, where liquidity has improved. This stability is bolstered by management’s ability to grow earnings per share (EPS) up to the current dividend level as capital is redeployed from resolutions and repayments.
Further supporting the Buy rating, Blackstone Mortgage has made significant progress in resolving impaired assets, with resolutions occurring above the carrying value. The company’s strategic move to add net lease real estate to their investment portfolio and the consistency in leveraged spreads on new investments are viewed favorably. Despite some credit challenges, the expectation of continued EPS growth and the stock trading at a discount to book value with a high dividend yield contribute to a positive investment thesis.