Deep Dive Into Safehold Stock: Analyst Perspectives (7 Ratings)

Across the recent three months, 7 analysts have shared their insights on Safehold SAFE, expressing a variety of opinions spanning from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $28.43, with a high estimate of $35.00 and a low estimate of $19.00. Surpassing the previous average price target of $24.60, the current average has increased by 15.57%.

Interpreting Analyst Ratings: A Closer Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive Safehold. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Safehold. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Safehold compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Safehold's stock. This examination reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Safehold's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

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Unveiling the Story Behind Safehold

Safehold Inc is a REIT that operates its business by acquiring, managing and capitalizing ground leases. Ground leases are long-term contracts between the landlord (the Company) and a tenant or leaseholder. Ground leases generally represent ownership of the land underlying commercial real estate projects that is net leased by the fee owner of the land to the owners/operators of the real estate projects built thereon.

Understanding the Numbers: Safehold's Finances

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Safehold showcased positive performance, achieving a revenue growth rate of 19.34% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Real Estate sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Safehold's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -143.72%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Safehold's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -5.51%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Safehold's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -1.91%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.7.

What Are Analyst Ratings?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.