Street Calls of the Week
Investing.com - Cantor Fitzgerald initiated coverage on Safehold (NYSE:SAFE) with a Neutral rating and a $17.00 price target, representing potential upside of 8.2% from current levels. According to InvestingPro data, the stock currently trades at $15.49, with analyst targets ranging from $16 to $28, suggesting broader potential upside. The company maintains a "GOOD" Financial Health score and offers a 4.6% dividend yield.
The research firm based its price target on a 2026 estimated AFFO multiple of 15.2x, which sits below the broader REIT industry average of 19.0x. The stock currently trades at attractive valuations with a P/E ratio of 10.7x and a price-to-book ratio of 0.47x, making it one of several potentially undervalued REITs tracked by InvestingPro’s Undervalued Stocks list.
Cantor Fitzgerald believes Safehold could experience "another period of unique upside" similar to what the company saw in 2019, but notes this would require a more stable macroeconomic environment.
The firm suggests a more favorable macro backdrop would help assign higher value to Safehold’s existing income stream and promote increased transaction activity where the company could offer its ground lease option.
Cantor Fitzgerald highlighted Safehold as "a stock to watch for 2026," while acknowledging that many of the current headwinds facing the company remain outside of its control.
In other recent news, Safehold Inc. reported its second-quarter earnings for 2025, revealing a slight miss on earnings per share (EPS) expectations but exceeding revenue forecasts. The company posted an EPS of $0.39, just below the anticipated $0.40, marking a 2.5% shortfall. However, revenue reached $93.8 million, surpassing the expected $92.67 million by 1.22%. In addition to its earnings report, Citizens JMP adjusted its price target for Safehold to $28.00 from $32.00. The firm maintained a Market Outperform rating, attributing the reduced target to concerns over sustained elevated interest rates. Nonetheless, Citizens JMP remains optimistic about Safehold’s long-term potential due to its compounding cash flows and position in the ground lease market. These developments highlight recent shifts in analyst perspectives and financial performance for Safehold.
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