BrightSpire Capital downgraded to Underperform at BofA on CRE exposure

As previously reported, BofA downgraded BrightSpire Capital to Underperform from Neutral with an unchanged price target of $6.50. 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 BrightSpire has done a good job cleaning up its legacy portfolio, it also thinks the next few quarters “may be choppy and risks are to the downside,” the analyst added.