- Goldman Sachs is adding iStar Financial (NYSE:SFI) to the Americas Conviction Buy List as the believe the co offers best-in-class earnings reliability, but the market has yet to grant it the premium multiple that it deserves, even after recent strong performance.
Additionally, the firm anticipates corporate credit spreads widening, and iStar is unique among Commercial Finance companies in demonstrating a positive and reliable relationship between relative share price performance and spreads; they attribute this important relationship to iStar's almost pristine credit record. GS's DDM-derived 3-month price target ($62) assumes only 3% constant growth yet implies over 30% upside, incremental to the current 6.6% dividend yield.
Catalyst Near-term: they expect iStar's inaugural investor day (this Wednesday, December 6th, 2006) to be a positive catalyst, providing management a platform from which to clearly articulate strategic direction and, potentially, any new opportunities for diversification and growth. Longer-term, they anticipate widening corporate credit spreads to catalyze relative share price appreciation.
Notablecalls: Expect to see a move but keep it on a very tight leash. Action looks toppish to me.
Additionally, the firm anticipates corporate credit spreads widening, and iStar is unique among Commercial Finance companies in demonstrating a positive and reliable relationship between relative share price performance and spreads; they attribute this important relationship to iStar's almost pristine credit record. GS's DDM-derived 3-month price target ($62) assumes only 3% constant growth yet implies over 30% upside, incremental to the current 6.6% dividend yield.
Catalyst Near-term: they expect iStar's inaugural investor day (this Wednesday, December 6th, 2006) to be a positive catalyst, providing management a platform from which to clearly articulate strategic direction and, potentially, any new opportunities for diversification and growth. Longer-term, they anticipate widening corporate credit spreads to catalyze relative share price appreciation.
Notablecalls: Expect to see a move but keep it on a very tight leash. Action looks toppish to me.
No comments:
Post a Comment