UPDATE: Safehold (SAFE) PT Lowered to $100 at Morgan Stanley on Higher Financing Costs

(Updated - April 28, 2022 8:34 AM EDT)

Morgan Stanley analyst Richard Hill lowered the price target on Safehold (NYSE: SAFE) to $100.00 (from $140.00) on higher financing costs and a smaller recapture of the investment spread as external growth concerns and rising bond yields overshadow two consecutive strong Qs.

The analyst reiterated an Overweight rating, stating "The company noted that they are targeting 50-60bp higher effective yields on ground leases and customers are not pushing back, but that is insufficient to immediately overcome the 150 to 200bp rise in financing costs.".

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