JMP maintains TPG RE Finance Trust stock at Market Outperform

Published 19/02/2025, 11:36
JMP maintains TPG RE Finance Trust stock at Market Outperform

On Wednesday, JMP analysts maintained their Market Outperform rating on TPG RE Finance Trust (NYSE:TRTX) with a steady price target of $10.00. The analysts’ stance comes after the company disclosed its fourth-quarter earnings for 2024. The $705.69 million market cap company has demonstrated strong momentum, delivering an impressive 73.21% return over the past year, according to InvestingPro data. TPG RE Finance Trust reported a GAAP EPS (Earnings Per Share) of $0.09 and a distributable EPS of $0.10 for the quarter. These figures fell short of the consensus expectations from six analysts, who had projected a distributable EPS of $0.27, as well as JMP’s own estimate of $0.24. Despite the earnings miss, InvestingPro analysis shows the company maintains a healthy dividend yield of 11.02% and trades at a P/E ratio of 12.43, with analysts forecasting revenue growth of 2.51% for the coming year.

TPG RE Finance Trust’s GAAP earnings were impacted by an increase in CECL (Current Expected Credit Loss) reserves amounting to $4.6 million, or $0.06 per share. Additionally, the distributable earnings were affected by realized losses of $9.7 million, or $0.12 per share. These losses were the result of the conversion of three loans, which were backed by multifamily properties, into REO (Real Estate Owned).

The analyst, Steven C. DeLaney, commented on the company’s financial results, noting the specific challenges that influenced the earnings report. The increase in CECL reserves and the conversion of loans into REO were significant factors that negatively impacted TPG RE Finance Trust’s distributable earnings for the quarter.

Despite the lower-than-expected earnings, the Market Outperform rating indicates that JMP analysts still see potential in TPG RE Finance Trust’s stock performance. The $10.00 price target suggests confidence in the company’s value and prospects moving forward. InvestingPro analysis reveals a GOOD overall Financial Health Score of 2.69, with particularly strong ratings in cash flow and price momentum. Subscribers can access 7 additional ProTips and comprehensive financial metrics in the Pro Research Report, providing deeper insights into TRTX’s investment potential.

TPG RE Finance Trust’s stock rating and price target remain unchanged following the announcement of their fourth-quarter earnings. The company’s financial performance and the factors affecting it have been outlined by the analysts, providing a clear picture of the recent developments within TPG RE Finance Trust.

In other recent news, TPG RE Finance Trust, Inc. reported the immediate resignation of board member Gregory White. The company’s statement clarified that White’s departure was not due to any disagreements or disputes regarding the company’s operations, policies, or practices. This information was disclosed in an 8-K filing with the Securities and Exchange Commission.

White’s resignation from the Board of Directors was communicated to the company recently and was effective immediately. The filing did not indicate any disputes or disagreements as the reason for his resignation, suggesting an amicable parting. TPG RE Finance Trust, Inc., a New York-based real estate investment trust, has not yet provided information on a successor or the impact White’s resignation may have on the board’s composition or operations.

These are recent developments, and investors and stakeholders of TPG RE Finance Trust, Inc. will be keen on understanding the implications of this board change and the company’s direction in the upcoming months.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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