In a report released today, Ki Bin Kim from Truist Financial maintained a Hold rating on Safehold (SAFE – Research Report), with a price target of $20.00.
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Ki Bin Kim has given his Hold rating due to a combination of factors that reflect the current challenges and potential opportunities for Safehold. The company’s recent earnings slightly missed the consensus expectations, which highlights some underlying issues in meeting financial targets. Additionally, the volatile long-term interest rate environment poses a challenge for Safehold, as it impacts their ability to generate a robust deal flow through their ground lease offering platform.
While Safehold has initiated a $50 million share repurchase program and successfully raised $400 million in 10-year debt, the lack of share repurchases to date and the cost of capital remain concerns. Ki Bin Kim acknowledges that improvements in the cost of capital could lead to more attractive pricing and accelerated earnings growth. However, for now, the preference remains on other opportunities with more promising earnings potential, resulting in a Hold rating for Safehold.
Bin Kim covers the Real Estate sector, focusing on stocks such as Americold Realty, Prologis, and NETSTREIT. According to TipRanks, Bin Kim has an average return of 9.1% and a 61.56% success rate on recommended stocks.
In another report released on February 3, J.P. Morgan also maintained a Hold rating on the stock with a $20.00 price target.