Analyst Donald Fandetti from Wells Fargo reiterated a Buy rating on Blackstone Mortgage (BXMT – Research Report) and keeping the price target at $22.00.
Donald Fandetti has given his Buy rating due to a combination of factors including the steady credit migration observed in the recent quarter. Despite a slight decline in book value, the company’s distributable earnings were in line with expectations when excluding net charge-offs. The portfolio is expected to grow modestly through 2025, with a focus on reaching $20 billion, and the completion of a $1 billion CRE CLO in the first quarter supports this outlook.
Additionally, the risk profile of the loan portfolio has shown improvement, with a decrease in impaired loans and successful resolutions above carry value. The company’s strategic moves, such as the initiation of a net lease property strategy, further bolster its growth prospects. The stock’s attractive valuation, trading at 0.87 times price-to-book with a 10% dividend yield, along with the potential benefits from anticipated Federal Reserve rate cuts, reinforce the positive outlook and justify the Overweight rating.
BXMT’s price has also changed slightly for the past six months – from $18.640 to $19.050, which is a 2.20% increase.