UBS Downgrades Ready Capital (RC) to $2.75 from $3.50, Keeps a Neutral Rating

Core Insights - Ready Capital Corporation (NYSE:RC) is currently viewed as a promising penny stock, but recent price target reductions by UBS and Keefe Bruyette indicate caution among analysts [1][2]. Financial Performance - Ready Capital reported a decline in core interest income for Q3 2025, with net interest income falling to $10.5 million due to a reduction in the loan portfolio and negative credit migration [2]. - The total loan portfolio's delinquency rate reached 5.9%, highlighting potential credit risks [2]. Strategic Focus - The company's future strategy discussions emphasize managing debt and addressing limited long-run earnings visibility, which is linked to market access and leverage [3]. Company Overview - Ready Capital operates as a real estate finance company in the US, functioning through two segments: LMM Commercial Real Estate and Small Business Lending [3].