Safehold downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley analyst Ronald Kamdem downgraded Safehold (SAFE) to Equal Weight from Overweight with a price target of $19, down from $30. The firm previously modeled $500M of lease originations annually, which is half the company’s pre-pandemic run rate prior to the significant rise in rates and the fall in transaction activity. However, it reduced assumptions for Safehold’s origination further down to $400M and prefers to move to the sidelines pending greater clarity on reaccelerating activity.