UBS resumed coverage of Starwood Property with a Buy rating and $20 price target. The recovery across the commercial mortgage real estate investment trust sector has been \"notably bifurcated,\" the analyst tells investors in a research note. The firm says platforms that have resumed meaningful loan origination are trading at 0.85-times book value on average, while those still working through legacy credit resolutions are closer to 0.20-times. UBS believes Starwood Property warrants a premium valuation given its balance sheet and platform strength as well as diversified business model.
