UPDATE: MLV Initiates NorthStar Realty Finance at Buy with PT of $6.50 on Valuation

MLV initiated its rating on NorthStar Realty Finance (NYSE: NRF) with a Buy rating and a price target of $6.50 a share.

MLV noted, "Our BUY rating on NRF is driven by the following thesis: NRF's differentiated business model consisting of complementary earnings streams which span real estate debt, real estate securities, owned net-lease properties and asset management. NRF's strong return profile for its current capital deployment pipeline; NRF expects a weighted average return on equity of 18%+. The company's attractive current dividend yield of 10.6%, which has grown 60% over the past 4 quarters, and which we believe has further upside potential. NRF's discounted current valuation, as shares trade at a 13% discount to book value."

NorthStar Realty Finance closed at $6.02 on Monday.