UPDATE: Deutsche Bank Initiates Coverage on Resource Capital Corp. with Hold Rating, $6.50 PT

In a report published Friday, Deutsche Bank initiated coverage on Resource Capital Corp.

with a Hold rating and $6.50 price target. Deutsche Bank noted, “We expect RSO's portfolio of primarily CRE debt investments, bank loans, and CMBS to post low-teen ROEs excluding gains in 2013, and we expect new investments to drive earnings growth. Our target of $6.50 per share is based on shares trading at a 20% premium to book value. While we expect the portfolio to generate attractive ROEs next year, we are initiating with a Hold rating given the current valuation relative to our target.” Resource Capital Corp. closed on Thursday at $5.89.