UPDATE: Bank of America Initiates Blackstone Mortgage Trust at Neutral on Valuation

In a report published Monday, Bank of America analyst Kenneth Bruce initiated coverage on Blackstone Mortgage Trust BXMT with a Neutral rating and a $27 price objective.

In the report, Bank of America cited, “our $27 price objective is based on a 1.10x multiple to our Q2’13 estimated BV of $24.66, in line with the average of its commercial mortgage REIT peers… Our price objective and dividend expectations suggest investors should recognize a healthy 9% total return over the next 12 months, consistent with a Neutral rating.”

Blackstone Mortgage Trust opened at $26.04.