Apollo Commercial downgraded to Underperform at BofA

As previously reported, BofA downgraded Apollo Commercial to Underperform from Neutral with an unchanged price target of $10.50. Commercial real estate, or CRE, mortgage REITs outperformed other financial stocks in 2023, but the firm thinks the fundamental headwinds CRE faces are likely to persist throughout 2024 and it is cautious on CRE mREITs broadly this year, the analyst tells investors. While the firm thinks Apollo Commercial’s portfolio is less exposed to the worst performing sub-sectors, it also thinks the next few quarters will “likely be choppy and risks are to the downside,” the analyst added.