Market Overview

UPDATE: Bank of America Reiterates on Blackstone Mortgage Trust Following Good Q4'13 Results

Strategic Hotels & Resorts' Stockholders Approve Blackstone Acquisition, $6B
Mortgage REIT Investors: What To Know From Blackstone's Latest Data
Weekend Reading: How One Letter Makes A Difference (Seeking Alpha)

In a report published Tuesday, Bank of America analyst Kenneth Bruce reiterated a Neutral rating on Blackstone Mortgage Trust (NYSE: BXMT), and raised the price target from $27.00 to $32.00.

In the report, Bank of America noted, “We are revising our earnings estimates for the mortgage REIT group after generally better than expected Q4'13 results. Results were particularly strong for the agency mortgage REITs that experienced yield expansion due to falling prepayments. That said, we think caution remains warranted for the group given the potential for rising rates going forward. Hybrid mortgage REITs also performed well as they diversified into credit assets. The commercial mortgage REIT sector continued to benefit from a favorable investment backdrop in Q4'13, which we expect will persist in '14.

"Despite the generally strong performance across the sector, we continue to believe that investors will need to be selective in '14 and focus on those companies that have the most effective interest rate hedging strategies and the greatest leverage to an improving economy such as the hybrid and commercial mortgage REITs.”

Blackstone Mortgage Trust closed on Monday at $29.03.

Latest Ratings for BXMT

Apr 2016Credit SuisseInitiates Coverage onOutperform
Jun 2015Bank of AmericaUpgradesNeutralBuy
May 2015Keefe Bruyette & WoodsMaintainsOutperform

View More Analyst Ratings for BXMT
View the Latest Analyst Ratings

Posted-In: Bank of America Kenneth BruceAnalyst Color Price Target Analyst Ratings


Related Articles (BXMT)

View Comments and Join the Discussion!