B.Riley FBR Believes Starwood Property Trust (NYSE: STWD) Still Has Room to Grow

By Jason Carr

In a report released today, Timothy P. Hayes from B.Riley FBR reiterated a Buy rating on Starwood Property Trust (NYSE: STWD), with a price target of $24. The company’s shares opened today at $22.38, close to its 52-week high of $22.96.

Hayes wrote:

“We reiterate our Buy rating and $24 price target on shares of Starwood Property Trust (STWD) following the announcement of a strategic relationship with Inc.—a non-qualified mortgage (“non-QM”) loan originator. We view this partnership as a positive as it bolsters the loan acquisition pipeline and strengthens one of the newer verticals of Starwood’s diversified investment platform. We continue to favor companies like Starwood that have multi- cylinder investment strategies, which should help to support earnings power and the $0.48/ share quarterly dividend—even in a competitive lending environment. We view shares of STWD to be attractively valued, currently trading at an 8.6% dividend yield and offering a ~16% potential total return opportunity.”

According to TipRanks.com, Hayes is a 3-star analyst with an average return of 10.3% and a 100.0% success rate. Hayes covers the Financial sector, focusing on stocks such as Sutherland Asset Management Corporation, Cherry Hill Mortgage, and Main Street Capital.

The the analyst consensus on Starwood Property Trust is currently a Hold rating.

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Starwood Property Trust’s market cap is currently $5.87B and has a P/E ratio of 14.94. The company has a Price to Book ratio of 1.32.

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Starwood Property Trust, Inc. engages in originating, acquiring, financing, and managing commercial mortgage loans and other commercial real estate debt and equity investments. It operates through the following segments: Real Estate Lending, Real Estate Property, and Real Estate Investing and Servicing.