UPDATE: MLV Initiates Starwood Property Trust at Buy with $25.50 on Balance Sheet Strength

MLV initiated its coverage on Starwood Property Trust (NYSE: STWD) with a Buy rating and a price target of $25.50.

MLV noted, "STWD's development of a “recurring” lending business, which has already originated or acquired over $5B of loans over the past three years. STWD's industry leading balance sheet allows the company to compete for deals ranging upwards of $100M in size, a competitive advantage relative to public peers. The company's outsized current return profile; as of 6/30 STWD had an expected return of 12.8% with a weighted average ending LTV of 65.1%. STWD's robust current dividend yield of 7.4%, which we believe has upside going forward."

Starwood Property Trust closed at $23.95 on Monday.