BrightSpire Capital:Jones Trading maintains Buy, PT raised to $6.5 from $6.5.

BrightSpire Capital:Jones Trading maintains Buy, PT raised to $6.5 from $6.5.

BrightSpire Capital, Inc. (BRSP) has seen its stock price rise on the back of positive earnings reports and an upgraded price target by Jones Trading. The investment firm has maintained its buy rating but raised its price target to $6.5 from $6.0 [2].

The company reported earnings for the second quarter of 2025, with earnings per share (EPS) of $0.16, matching analysts' expectations [2]. Despite a negative net margin of 44.85%, the company demonstrated a positive return on equity of 8.07% [2].

BrightSpire Capital's CEO, Michael Joseph Mazzei, highlighted the company's progress in reducing watch list exposure by nearly 50% and improving the portfolio's risk profile. He emphasized that the company continues to trade at a significant discount to its undepreciated book value and believes the stock is significantly undervalued [1].

The company's portfolio grew by approximately 3% or $70 million on a net basis in the second quarter, excluding the impact of the San Jose Hotel loan moving to REO. This growth was driven by capital deployment of $105 million in the quarter [1].

Jones Trading's upgrade reflects the firm's optimism about BrightSpire Capital's ability to grow its loan portfolio and improve its financial performance. The analyst noted that the company's focus on maximizing shareholder value through disciplined portfolio management and targeted capital deployment positions it well for future growth [2].

Looking ahead, BrightSpire Capital expects loan origination conditions to improve in the second half of the year, with an additional 6 loans for $114 million already closed or in execution. The company also anticipates an increase in repayment volume related to both loan payoffs and REO resolutions over the next several quarters [1].

Institutional investors have shown interest in BrightSpire Capital, with hedge funds and banks increasing their stakes in the company. Royal Bank of Canada, for example, lifted its stake by 90.1% in the first quarter [2].

BrightSpire Capital's stock has a market cap of $652.96 million, a P/E ratio of -8.94, and a beta of 1.47. The stock has a 1-year low of $4.16 and a 1-year high of $6.45. The firm's fifty-day simple moving average is $5.12 and its two-hundred day simple moving average is $5.36 [2].

References:
[1] https://seekingalpha.com/news/4474566-brightspire-capital-outlines-3_5b-portfolio-growth-path-amid-50-percent-reduction-in-watch
[2] https://www.marketbeat.com/instant-alerts/brightspire-capital-nysebrsp-announces-earnings-results-hits-estimates-2025-07-29/