RC Stock Forecast & Price Target

Ready Capital demonstrates a positive outlook driven by its recent loan sales, as evidenced by the sale of $494 million in multifamily bridge loans, which generated $85 million in net proceeds. Despite an increase in non-accrual loans to 88.4%, the company identifies improving conditions for increased originations, suggesting potential for future growth in its lending segments. Furthermore, the overall market environment appears to present select opportunities, positioning Ready Capital favorably for expansion in the commercial real estate sector.

Ready Capital Corp has experienced a notable decline in cash yield, which fell to 5.3% from 5.7% in the previous quarter, indicating reduced profitability in its operations. Furthermore, the forecast for tangible book value (TBV) suggests a decline to $9.40 by year-end 2025, down from $10.14 in the second quarter of the same year, reflecting a year-over-year drop of 20%. The company also faces significant risk factors, including potential credit deterioration, challenges in financing availability, higher borrowing costs, and lower-than-expected loan originations, all contributing to a pessimistic outlook for its financial health.