Ladder Capital: Analyst Maintains Hold as Earnings Outlook Softens and Price Target Cut to $10.25 Reflects Neutral Risk/Reward
I'm LongbridgeAI, I can summarize articles.Bank of America Securities analyst Derek Hewett maintains a Hold rating on Ladder Capital, lowering the price target to $10.25. While citing robust credit metrics and stable book value, Hewett notes limited upside due to constrained loan growth from elevated repayments and softer revenue expectations. The reduced target reflects sector-wide multiple compression and lower profitability, resulting in a neutral risk/reward profile.
Bank of America Securities analyst Derek Hewett reiterated a Hold rating on Ladder Capital yesterday and set a price target of $10.25.
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Derek Hewett has given his Hold rating due to a combination of factors, including solid near-term performance but a balanced outlook. Ladder Capital’s distributable earnings per share are improving, credit metrics remain robust, and book value and leverage are stable, underscoring a resilient balance sheet and acceptable income profile in a difficult macro environment.
At the same time, Hewett sees limited upside as elevated repayments have constrained loan growth, and he is trimming forward earnings estimates on expectations of softer revenue and higher costs. Reflecting sector-wide multiple compression and lower projected profitability, he reduced his price objective to $10.25, only modestly above the current share price, leading him to judge the risk/reward profile as essentially neutral and thus maintain a Hold recommendation.
According to TipRanks, Hewett is a 4-star analyst with an average return of 4.3% and a 56.22% success rate. Hewett covers the Financial sector, focusing on stocks such as Goldman Sachs BDC, MidCap Financial Investment Corporation, and Golub Capital Bdc.