Ready Capital downgraded to Neutral from Buy at Ladenburg

Ladenburg downgraded Ready Capital to Neutral from Buy and removing the firm’s price target given material levels of loan reserving in Q1 and continued deterioration of different asset quality metrics for Ready in the quarter. The firm, which thinks Ready will experience further reserve building in coming quarters, making its ability to achieve its goal of a 10% annual return on equity from distributable earnings unachievable in 2024 or 2025, believes share price will be range bound through the remainder of the current commercial real estate, or CRE, down-cycle.