UPDATE: JMP Securities Upgrades Seven Hills Realty Trust (SEVN) to Market Outperform
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JMP Securities analyst Chris Muller upgraded Seven Hills Realty Trust (NASDAQ: SEVN) from Market Perform to Market Outperform with a price target of $13.50.
The analyst comments "We are upgrading our investment rating on shares of Seven Hills Realty Trust (SEVN) to Market Outperform with a price target of $13.50 (8.5% req. yield, 0.74x BV) from Market Perform following the company’s 1Q22 earnings call, our review of the 10-Q, and our working model update. Seven Hills has made significant progress in transforming the company over the last two years through a merger, a rebranding, and optimization of the balance sheet. The company continues to make strides toward its stated target of growing the loan portfolio to $1B, and as of June 21, the portfolio exceeded $730M. With SEVN shares now trading at just 0.58x March 31 GAAP BV of $18.17, we believe the current discount to book value is unwarranted given the growth in earning assets, tailwind from rising interest rates, and potential for further meaningful dividend growth. Our $13.50 price target is based on an 8.5% required yield on our projected NTM dividend estimate of $1.15 and is equal to just 0.74x current book value per share. If achieved, our price target could offer a potential total return of ~36% with price appreciation of 27% and an annual yield of 9.4% based only on the current dividend."
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Related EntitiesJMP Securities, Earnings, Definitive Agreement
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