Apollo Commercial price target raised to $10 from $9.50 at JPMorgan

JPMorgan raised the firm’s price target on Apollo Commercial to $10 from $9.50 and keeps a Neutral rating on the shares as part of Q2 preview for the mortgage real estate investment trusts. The firm sees a positive outlook for the residential mortgage REITs, saying recent economic data buttresses the case for rate cuts, which will reduce pressure on net interest margin. It sees potential book value appreciation as the Federal Reserve shifts. For commercial mortgage REITs, the analyst has a cautious outlook, saying risk still outweighs value. JPMorgan remains cautious on commercial real estate credit, forecasting higher charge-offs and reserve rates across the board.