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Investing.com - Citizens JMP has lowered its price target on Safehold (NYSE:SAFE) to $28.00 from $32.00 while maintaining a Market Outperform rating. The stock, currently trading at $14.01, has seen a significant decline of 22.57% year-to-date, though InvestingPro analysis suggests it remains undervalued.
The firm cited the likelihood of sustained elevated interest rates as the primary reason for the reduced target, though it remains positive on the stock due to its long-term compounding cash flows and first-mover advantage in the ground lease market. Trading at an attractive P/E ratio of 9.82 and price-to-book of 0.42, the company offers a compelling 5.05% dividend yield.
Citizens JMP noted that Safehold’s recent quarter demonstrated management’s ability to structure creative transactions that benefit customers, while the company’s deal pipeline reflects accelerating volumes within the investment sales market.
The firm highlighted that Safehold offers bond-like cash flows that compound annually over a long period, along with potential for appreciation as improvements on top of investments revert to Safehold upon ground lease conclusion.
Citizens JMP also pointed to Safehold’s competitive advantages, including no organized competition, proven relationships offering repeat business, and a low attachment point with significant appreciation potential as leases conclude.
In other recent news, Safehold Inc. reported its earnings for the second quarter of 2025, showing mixed results. The company posted earnings per share (EPS) of $0.39, slightly below the analysts’ expectation of $0.40, marking a 2.5% miss. However, Safehold exceeded revenue forecasts, reporting $93.8 million compared to the anticipated $92.67 million, a 1.22% increase. These results indicate a stronger performance in revenue despite the minor shortfall in EPS. While the company’s stock price experienced a modest increase following the announcement, the focus remains on these financial metrics. No major upgrades or downgrades from analysts were reported in the recent updates. Investors may find these developments significant as they evaluate Safehold’s financial health and market position.
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