TPG RE Finance downgraded to Underperform at BofA on CRE exposure

As previously reported, BofA downgraded TPG RE Finance to Underperform from Neutral with a $6.50 price target. Commercial real estate, or CRE, mortgage REITs outperformed other financial stocks in 2023, but the firm thinks the fundamental headwinds CRE faces are likely to persist throughout 2024 and it is cautious on CRE mREITs broadly this year, the analyst tells investors. While noting that TPG RE Finance has taken meaningful steps to improve portfolio credit, the firm thinks “the next few quarters may be choppy and risks are to the downside,” the analyst added.