UPDATE: MLV Initiates Buy, $6 PT on Resource Capital Corporation on Return Profile

MLV initiated its coverage on Resource Capital Corporation RSO with a Buy rating and a price target of $6. MLV commented, "Our BUY rating on RSO is driven by the following thesis: RSO's established real estate lending platform which focuses on bridge loans in the $10-$30M range, an area of the market where there is less competition from larger lenders. The strong return profile on capital deployed in commercial mortgage investments, including loan originations, and CMBS investments; RSO is targeting 12-15% returns on its CRE investments. RSO's reduction in its overall leverage. RSO's attractive and secure current dividend yield of 13.7%, which is outsized relative to peers." Resource Capital Corporation closed at $5.91 on Monday.