JPMorgan has revised its price target for Blackstone Mortgage Trust (BXMT, Financial), reducing it from $20 to $18.50, while maintaining a Neutral rating on the stock. This adjustment is part of the firm's first-quarter outlook for mortgage real estate investment trusts (MREITs).
The bank's analysis points out that although lower short-term interest rates might offer borrowers some relief by decreasing financing costs, these rates could also be a warning sign of a potential recession. Such economic conditions may impact occupancy levels and rent growth, complicating the resolution of troubled assets.
The report highlights the heightened macroeconomic uncertainty that currently clouds the outlook for MREITs like Blackstone Mortgage Trust. As a result, JPMorgan perceives a balanced risk and reward scenario, advising investors to proceed with caution.
