Deutsche Bank analyst George Bahamondes downgraded Blackstone Mortgage Trust Inc.'s stock rating to "hold" from "buy" and set a price target of $35.

The price target was set based on shares trading at a 27% premium to book value.

The analyst wrote that "Slower portfolio growth and deployment of capital or higher-than-expected repayments may result in our estimates proving aggressive." The price target may prove to be conservative if portfolio growth is strong.

The analyst expects Blackstone to use leverage to improve returns.