Seven Hills Realty Trust initiated with a Buy at JonesTrading

JonesTrading analyst Jason Stewart initiated coverage of Seven Hills Realty Trust with a Buy rating and $13 price target. The pure play commercial mortgage REIT that originates and invests in floating rate first mortgage loans is "undervalued," argues Stewart, who notes that his price target represents a total return opportunity of 48%. While he has concerns over the impact of higher cap rates on underlying real estate values, portfolio LTVs are low and Seven Hills has "historically maintained pristine credit experience," the analyst tells investors.