BTIG analyst Douglas Harter upgraded TPG Mortgage Investment to Buy from Neutral with a $9 price target. The firm says the residential credit-focused mortgage real estate investment trusts offer a more discounted valuation than the agency-focused, plus more book value upside potential over time. For TPG Mortgage, BTIG sees continued improvement in earnings power as capital is recycled from its legacy commercial real estate book into home equity loans. This higher level of earnings power should result in a higher dividend and higher valuation multiple, the analyst tells investors in a research note.
