BrightSpire Capital downgraded to Underweight from Equal Weight at Barclays

Barclays downgraded BrightSpire Capital (BRSP) to Underweight from Equal Weight with a price target of $5, down from $7, as part of a Q2 preview for the mortgage finance sector. The origination environment remains challenging, and investors should own balanced business models with meaningful servicing segments, the analyst tells investors in a research note. Barclays cites the challenging reinvestment backdrop and dividend coverage for the downgrade of BrightSpire. It believes the challenging reinvestment backdrop poses a risk to the company’s growth targets and could pressure its dividend coverage.