Safehold initiated with a Buy at Jefferies

Jefferies initiated coverage of Safehold with a Buy rating and $33 price target. The analyst says the company offers highly stable cash flows and material growth potential from new ground lease originations, with a moderating interest rate environment as a tailwind. Additionally, “Caret” has created a way for Safehold to monetize long-term capital gains, the analyst tells investors in a research note. Jefferies believes the current stock price undervalues Safehold’s stable cash flows and earnings growth potential.