Safehold price target raised to $25 from $22 at Goldman Sachs

Goldman Sachs raised the firm’s price target on Safehold to $25 from $22 and keeps a Buy rating on the shares. The firm is adjusting its model to reflect higher interest expense due to line of credit usage and lower-than-expected management fees, but higher contribution from ground lease adjacent products. Goldman is also reducing its future acquisition volumes view as a result of lower transaction volumes in real estate broadly and a higher cost of capital, which impacts its future equity and debt assumptions.