Arbor Realty downgraded to Market Perform from Outperform at Raymond James

Raymond James analyst Stephen Laws downgraded Arbor Realty (ABR) to Market Perform from Outperform without a price target following the Q4 report. The increase in interest rates and the “higher-for-longer” rate outlook has created headwinds for Arbor’s business, such as the need for additional loan modifications to manage through problem loans, the analyst tells investors in a research note. With the shares trading roughly in-line with the company’s year-end book value, Raymond James believes the current valuation appropriately balances the near-term headwinds with the longer-term earnings potential of the platform.