FBR Capital Upgrades RAIT Financial Trust (RAS) to Outperform; 'Back in Business'

January 15, 2013 8:52 AM EST
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Price: $3.64 +1.11%

Rating Summary:
    4 Buy, 3 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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FBR Capital upgraded RAIT Financial Trust (NYSE: RAS) from Market Perform to Outperform with a price target of $8.00 (from $5.50), saying the company is officially "back in business."

The firm notes that after years of struggling since the Great Recession, is back to its roots: CRE bridge loan and CMBS conduit lending.

"We believe the aforementioned can be, and will be, material drivers of growth in 2013. In addition, we expect RAS to utilize the reopening of the securitization market to finance its bridge lending business on a nonrecourse basis. The combination of loan origination growth and an already conservative payout ratio should lead to material increases in the dividend over the course of the year. We believe the dividend could double to $0.20/quarter from the current $0.10/quarter payout."

For an analyst ratings summary and ratings history on RAIT Financial Trust click here. For more ratings news on RAIT Financial Trust click here.

Shares of RAIT Financial Trust closed at $6.40 yesterday.

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