UBS analyst Marissa Lobo resumes coverage on Starwood Property Trust (NYSE: STWD) with a Buy rating and a price target of $20.00.

The analyst comments: “We assume coverage of STWD with a Buy rating and $20.00 price target; inclusive of the dividend we see ~28% total return potential. Unlike pure-play CRE lenders, STWD operates five distinct earnings cylinders: commercial lending, infrastructure lending, owned property, special servicing and net lease. This diversification currently offers better risk-adjusted returns (energy infrastructure lending) and some downside protection from increased level of problem assets in the industry (special servicing). As temporary headwinds including elevated cash balances, non-accrual resolution costs and net lease ramp dilution clear over 2026-2027, we expect run-rate ROE to recover towards 10-11%. Our $20 price target applies a premium multiple of 1.07x undepreciated book, which we believe is warranted by the platform's structural differentiation, 17-year dividend track record and downside protection.”

For an analyst ratings summary and ratings history on Starwood Property Trust click here. For more ratings news on Starwood Property Trust click here.

Shares of Starwood Property Trust closed at $16.80 yesterday.