Beyond The Numbers: 7 Analysts Discuss Safehold Stock

Analysts' ratings for Safehold SAFE over the last quarter vary from bullish to bearish, as provided by 7 analysts.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts have set 12-month price targets for Safehold, revealing an average target of $29.86, a high estimate of $35.00, and a low estimate of $22.00. This upward trend is apparent, with the current average reflecting a 10.59% increase from the previous average price target of $27.00.

Analyzing Analyst Ratings: A Detailed Breakdown

The perception of Safehold by financial experts is analyzed through recent analyst actions. The following summary presents 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: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Safehold compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Safehold's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Safehold's market standing. Stay informed and make data-driven decisions with our Ratings Table.

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Delving into Safehold's Background

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.

Safehold: A Financial Overview

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Safehold's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 40.42% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Real Estate sector.

Net Margin: Safehold's net margin is impressive, surpassing industry averages. With a net margin of 39.97%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Safehold's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.83%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Safehold's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.63%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 1.78, Safehold adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Significance of Analyst Ratings Explained

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

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.

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