Summary:
- Ladder Capital (LADR, Financial) reported Q1 earnings below expectations, with a distributable EPS of $0.20.
- Wall Street analysts forecast a significant upside, with target prices suggesting a potential increase of over 25%.
- GuruFocus estimates the company's fair value with a 17% upside from current trading levels.
Ladder Capital Corp. (NYSE: LADR) faced a challenging quarter as it missed its first-quarter earnings expectations. With a distributable earnings per share of $0.20, it fell short of the anticipated $0.22. This shortfall was accompanied by a decline in net interest income, which dropped to $20.3 million from $27.2 million in the previous quarter. Additionally, the company's total costs increased to $40.6 million, causing further concern. In a bid to navigate the turbulent financial landscape, Ladder Capital originated new loans worth $329 million. However, this expansion in lending activities led to a significant reduction in cash reserves, now standing at $479.8 million.
Wall Street Analysts' Forecast
Wall Street analysts have set their sights optimistically on Ladder Capital Corp (LADR, Financial) for the upcoming year. Based on the insights from 6 analysts, the average target price for LADR stands at $12.75, with projections ranging from a high of $14.00 to a low of $11.00. This average target price highlights a promising upside potential of 25.68% from the current trading price of $10.15. For those seeking a deeper dive into these figures, more detailed estimate data is available on the Ladder Capital Corp (LADR) Forecast page.
Furthermore, consensus among six brokerage firms indicates a favorable position for Ladder Capital Corp, with an average brokerage recommendation of 1.8. This suggests an "Outperform" status, within a rating scale where 1 denotes a Strong Buy and 5 signifies a Sell. This positive sentiment could be an encouraging sign for potential investors considering this stock.
GuruFocus Valuation Insights
According to GuruFocus' proprietary metrics, the estimated GF Value for Ladder Capital Corp (LADR, Financial) in the upcoming year is $11.87. This valuation estimate suggests an upside of 17% from its current trading price of $10.145. The GF Value reflects an estimate of the fair stock price based on historical trading multiples, past business growth, and projected future performance. Investors can access more comprehensive data on the Ladder Capital Corp (LADR) Summary page.
In conclusion, while Ladder Capital's recent performance raises some concerns, the optimistic forecasts from both analysts and GuruFocus may indicate potential opportunities for investors. However, as with any investment, careful analysis and consideration are advised.
