Safehold price target lowered to $34 from $40 at BofA

BofA analyst Derek Hewett lowered the firm’s price target on Safehold to $34 from $40 and keeps a Buy rating on the shares. Safehold reported Q1 adjusted EPS above BofA and Street expectations and completed its merger with iStar, notes the firm, which adds that CRE transaction volume was "predictably weak" given the challenging macro backdrop for real estate. However, BofA continues to view ground leases as attractive given the long-term nature of the cash flows and views Safehold as well-positioned to scale the business over time.