FBR Capital Reiterates Their Buy Rating on Colony NorthStar Inc

By Ryan Adsit

FBR Capital analyst Jessica Levi-Ribner reiterated a Buy rating on Colony NorthStar Inc (NYSE: CLNS) on May 12 and set a price target of $16. The company’s shares opened today at $13.34.

Levi-Ribner observed:

“Similar to last quarter, this was another noisy release for Colony NorthStar, Inc. given the earnings miss, continued transition in the portfolio, and the first quarter of consolidated disclosures. Despite all that, there were a lot of positives in the quarter, and we are looking forward to earnings growth through the year as the company continues to deploy capital in its core strategies, realizes increased investment management fees given its brisk pace of capital raising, and manages the liabilities side of its balance sheet. On the valuation front, now that we have full disclosures, we are adjusting our NAV estimate to an “in-place” NAV and considering that in combination with an FFO multiple to arrive at a valuation for the shares, which we discuss further below. Overall, while the transition to a hybrid equity REIT structure could take longer than we initially anticipated, we remain positive on the shares and believe that our investment thesis remains intact. As such, we reiterate our Outperform rating and $16.00 price target.”

According to TipRanks.com, Levi-Ribner is a 4-star analyst with an average return of 8.5% and a 71.6% success rate. Levi-Ribner covers the Financial sector, focusing on stocks such as Sutherland Asset Management Corporation, Arlington Asset Investment, and New York Mortgage Trust.

Currently, the analyst consensus on Colony NorthStar Inc is Moderate Buy and the average price target is $18, representing a 34.9% upside.

In a report issued on May 11, RBC Capital also reiterated a Buy rating on the stock with a $20 price target.

The company has a one year high of $16.09 and a one year low of $9.70. Currently, Colony NorthStar Inc has an average volume of 3.48M.

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Colony NorthStar, Inc. is a global real estate investment trust. It operates through the following segments: Healthcare, Light Industrial, Hospitality, Other Equity and Debt and Investment Management. The Healthcare segment consists of a portfolio of medical office buildings, senior housing, skilled nursing and other healthcare properties. The Light Industrial segment comprises of primarily light industrial assets in infill locations. The Hospitality segment provides extended stay hotels and premium branded select service hotels. The Other Equity and Debt segment includes portfolios of net lease, multifamily and multi-tenant office properties. The Investment Management segment generates fee income through investment management services and sponsoring investment products by institutional and retail investors. The company holds properties in healthcare, industrial and hospitality sectors, other real estate equity and debt investments and retail investment management business. Colony NorthStar was founded on May 31, 2016 and is headquartered in Los Angeles, CA.