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Apollo commercial mREIT stock falls after J.P. Morgan turns bearish, while Annaly Capital stock gains

Shares of Apollo Commercial Real Estate Finance Inc. dropped 3.8% toward a seven-week low, after J.P. Morgan analyst Richard Shane turned bearish on the commercial real estate investment trust (CREIT), as growing market concerns over a recession offset benefits associated with rising interest rates. He downgraded Apollo to underweight from neutral, and lowered his stock price target by 12%, to $11.00 from $12.50. "We believe shares are fairly valued given the outlook for CRE lending and ARI's specific asset mix and credit uncertainty across the sector," Shane wrote in a note to clients. The downgrade was part of Shane updating estimates for the mortgage REIT (mREIT) sector, as he cut stock price targets for the companies he covers by an average of 8%. Apollo's stock has dropped 12.3% over the past three months, while the SPDR Real Estate Select Sector ETF has lost 4.7% and the S&P 500 has declined 5.2%. Elsewhere, shares of residential mREIT Annaly Capital Management Inc. roes 2.2% in active trading, after Shane trimmed his stock price target by 7.1%, to $6.50 from $7.00, but reiterated his overweight rating. And Claros Mortgage Trust Inc.'s stock gained 0.7%, even as Shane downgraded the commercial mREIT to underweight from neutral.

-Tomi Kilgore

 

(END) Dow Jones Newswires

09-06-22 1447ET

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