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KBW Raises Arbor Realty Trust (ABR) Price Target While Staying Bearish on Shares

Arbor Realty Trust, Inc. (NYSE:ABR) is included among the 15 Best Stocks to Buy Now for Passive Income.

On March 4, Keefe Bruyette analyst Jade Rahmani raised the firm’s price recommendation on Arbor Realty Trust, Inc. (NYSE:ABR) to $8 from $7.50. The firm reiterated an Underperform rating on the shares.

During the Q4 2025 earnings call, Chairman, President and CEO Ivan Kaufman said Arbor Realty Trust is focused on resolving nonperforming and underperforming loans. He described these loans as a major factor that has been weighing on the company’s earnings. Kaufman said management has a clear plan to work through most of these troubled loans over the coming quarters. If that effort succeeds, he suggested it could restore as much as $100 million to the company’s annual income run rate, or about $0.48 per share.

He noted that the company ended the year with about $570 million in delinquent loans and around $500 million in real estate owned assets. Together, those figures bring total nonperforming assets to roughly $1.1 billion. Kaufman said that the amount declined by more than $130 million compared with the previous quarter. He added that the company expects to resolve about $100 million to $150 million in delinquencies by the end of March. Another $100 million to $150 million could potentially be addressed within the following 90 days.

Kaufman also spoke about the company’s share repurchase activity. He said Arbor Realty Trust bought back about $20 million of its stock in recent months under its repurchase program, at an average price of $7.40 per share. That price represents about 64% of book value.

Arbor Realty Trust, Inc. (NYSE:ABR) is a real estate investment trust and direct lender that provides loan origination and servicing for multifamily, single-family rental portfolios, and other commercial real estate assets. The company operates through two segments: Structured Business and Agency Business.

While we acknowledge the potential of ABR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ABR and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 15 Best High Dividend Stocks to Invest in Under $100 and 40 Most Popular Stocks Among Hedge Funds Heading into 2026.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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