Compass Point Reiterates a 'Buy' on RAIT Financial Trust (RAS); Finding Real Value

Compass Point reiterates a 'Buy' on RAIT Financial Trust (NYSE: RAS) price target of $9.00.

Analyst, Jason Stewart, said, "After recently meeting with management, we have increased conviction in our investment thesis on RAS shares. Many of the items that caused investor concern following 1Q12 results we expect to be alleviated following 2Q12 earnings. Property level trends continue to show improvement. The company has a strong pipeline of investment opportunities in both transitional loans and CMBS loans. Core cash flow from investments is increasing, and while management has maintained a cautious approach to increasing the dividend, we expect the dividend will end 2012 higher than the current $0.08 per share quarterly payout. Management has become more proactive with regard to disclosure (notably on fair of book equity and future cash flow from investments) and we expect the changes to resonate with the investment community."

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 $4.40 yesterday.

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