TPG RE Finance upgraded to Overweight from Neutral at JPMorgan

JPMorgan upgraded TPG RE Finance to Overweight from Neutral with a price target of $9.50, up from $9. The firm expects residential mortgage real estate investment trusts to be the earliest beneficiaries of lower interest rates. Meanwhile, TPG RE has “significantly de-risked” its portfolio by addressing risk-rated 5 loans and achieving a 100% performing portfolio, the analyst tells investors in a research note. With the shares still trading at a significant discount to book value, JPMorgan sees the stock’s risk/reward skewed to the upside from here.