Apollo Commercial price target lowered to $8.50 from $9.50 at JPMorgan

JPMorgan lowered the firm’s price target on Apollo Commercial to $8.50 from $9.50 and keeps a Neutral rating on the shares as part of a Q3 earnings preview. The firm expects residential mortgage real estate investment trusts to be the earliest beneficiaries of lower interest rates. Residential mortgage REITs are levered to falling rates via a positive duration gap, which should be immediately accretive to book value, the analyst tells investors in a research note.