Wells Fargo downgrades Claros Mortgage to Equal Weight after quarterly results

As previously reported, Wells Fargo analyst Donald Fandetti downgraded Claros Mortgage to Equal Weight from Overweight with a price target of $11, down from $13, following quarterly results. The firm cites heightened CRE lending risk. Claros Mortgage’s construction loans are a risk in an economic slowdown. They have less office versus peers, but their multi-family loans are now feeling pressure, Wells adds. The shares trade at 0.66-times P/B, however the firm believes there could be further downside if the economy slows.