Deutsche Bank Downgrades Gramercy (GKK) to Hold
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Deutsche Bank downgrades Gramercy (NYSE: GKK) to Hold. Price target increased from $1.80 to $2.50.
Deutshe analyst says, "We are downgrading Gramercy to a Hold given our concerns for long-term liquidity and the recent increase in valuation. While Gramercy settled obligations or amended credit agreements, losses on commercial real estate loans will likely continue to challenge Gramercy and threaten to divert cash flows from Gramercy's three CDOs. While we expect sufficient near-term liquidity, we remain concerned about liquidity on a long-term basis. As a result, we believe a Hold rating is appropriate. While we have slightly reduced our discount, credit concerns, liquidity risks, and occupancy risks in the realty portfolio remain, which leads us to believe a significant book value discount is still warranted. We also expect shares to remain volatile as the company continues to manage its liquidity and portfolio."
Gramercy Capital Corp. (Gramercy) is an integrated commercial real estate finance and property investment company.
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