Gold prices bounce off 3-week lows; demand likely longer term
Investing.com - JMP Securities has reiterated its Market Outperform rating and $10.00 price target on TPG RE Finance Trust (NYSE:TRTX), citing the company’s solid credit performance. According to InvestingPro analysis, TRTX is currently trading below its Fair Value, with a healthy financial score of GOOD and a modest price-to-book ratio of 0.58x.
The price target represents a potential 23.8% price appreciation from the last closing price, with a total potential return of approximately 36% when including the 11.9% cash dividend yield. Notable is TRTX’s consistent dividend track record, having maintained payments for 9 consecutive years. InvestingPro subscribers can access 7 additional key insights about TRTX’s financial health and market position.
JMP highlighted that TPG RE Finance Trust is well-positioned to capitalize on an attractive lending environment due to its strong credit portfolio, which currently has no loans assigned a 5-rating.
The $10.00 price target is based on a 9.6% required yield on the current annualized dividend of $0.96 and equates to 0.89 times book value.
The firm noted that TRTX’s solid credit performance gives it flexibility to deploy capital into new loans while many competitors remain on the sidelines.
In other recent news, TPG RE Finance Trust reported its Q1 2025 earnings, revealing a slight miss in earnings per share (EPS) but a small beat in revenue. The company achieved an EPS of $0.24, just below the forecasted $0.25, while revenue slightly exceeded expectations at $37.03 million. Despite the minor miss in EPS, TPG RE Finance Trust maintains strong financial stability with a 100% performing loan portfolio and $457.6 million in assets. Additionally, the company successfully closed two multifamily loans totaling $131 million and executed term sheets on another $310 million of transactions. TPG RE Finance Trust’s strategic focus includes monetizing its REO portfolio, with plans to sell two office properties in California. These recent developments reflect the company’s ongoing efforts to optimize shareholder returns and capture special situation lending opportunities. The firm continues to emphasize its liquidity position and strategic growth in net earning assets. Analysts from JMP Securities and BTIG have shown interest in the company’s disciplined approach to lending and its future plans for asset sales.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.