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Starwood Property Trust Inc. (NYSE:STWD) is one of the top undervalued REIT stocks to buy now. On April 16, JPMorgan reiterated an Overweight rating on Starwood Property Trust Inc. (NYSE:STWD) but lowered the price target to $19 from $20.

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The price target cut is part of a broader sector adjustment. The investment bank has adjusted its mortgage real estate investment trust group amid an uncertain macroeconomic environment. According to JPMorgan, higher rates are a persistent headwind rather than a new challenge for the sector.

Earlier, BofA Securities also cut its price target of the stock to $19 from $20 and reiterated a Neutral rating. The price target cut followed a decent quarter and concerns about dilution stemming from the FIP acquisition. There were also concerns that excess liquidity continues to weigh on near-term earnings. Nevertheless, the research firm touted origination volume across Starwood Property Trust’s lending segments that remain solid. In addition, capital deployment at FIP is increasing.

Starwood Property Trust Inc. (NYSE:STWD) is a diversified finance company that operates as a leading commercial real estate lender, originator, and investor. It focuses on originating, acquiring, and managing commercial mortgage loans, mezzanine loans, and preferred equity, while also investing in property, infrastructure, and affordable housing.

While we acknowledge the potential of STWD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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