KKR Real Estate Finance price target raised to $13 from $11 at JPMorgan

JPMorgan raised the firm’s price target on KKR Real Estate Finance to $13 from $11 and keeps an Overweight rating on the shares. Rising interest rates have been a headwind for both residential mortgage real estate investment trusts and commercial mortgage REITs for almost two years, the analyst tells investors in a research note. However, for the first time since this rate cycle began, JPMorgan sees “risk skewed towards lower rather than higher.” While commercial mortgage REITs will continue to face deteriorating credit, lower rates could bring incremental relief for projects at the edge of default. says JPMorgan.