Compass Point analyst Scott Valentin downgraded Sutherland Asset Management Corp.'s stock rating to "neutral" from "buy" on valuation and raised the price target to $16.50 from $16.

The analyst, as a result of Sutherland Asset's second-quarter EPS beat, increased Sutherland Asset's adjusted EPS estimate to $1.79 from $1.65 for 2018, and maintained adjusted EPS estimate of $1.76 for 2019.

The analyst wrote that while Sutherland Asset's quarterly results are more volatile than a typical real estate investment trust due to a significant percentage of revenue being derived from gain on sale revenue, the company "possesses unique attributes that make the shares worth holding for REIT investors."