Sunrise Realty Trust Inc (SUNS) has received a new Buy rating, initiated by B.Riley Financial analyst, Randy Binner.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
Randy Binner has given his Buy rating due to a combination of factors that position Sunrise Realty Trust, Inc. favorably in the current market. The company is strategically placed to benefit from the existing lending environment, which is characterized by banks pulling back from the market, allowing SUNS to achieve attractive spreads on new originations. Focusing on Southeastern U.S. multifamily and hospitality properties, SUNS offers a compelling yield between 12% and 14%, and is expected to significantly grow its portfolio by leveraging recent equity offerings and available debt capacity.
Additionally, the absence of legacy assets in SUNS’s portfolio eliminates performance hindrances, allowing for more efficient capital deployment. The strong management team, with experience in credit and real estate, is driving the company’s strategic initiatives, and the recent increase in the share count through an equity offering is set to support rapid growth in earnings. These factors, combined with a robust dividend outlook and favorable yield, underpin Binner’s $15 price target and Buy rating for SUNS.
In another report released on February 10, KBW also initiated coverage with a Buy rating on the stock with a $12.75 price target.
Based on the recent corporate insider activity of 32 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 SUNS in relation to earlier this year.