UPDATE: Deutsche Bank Lowers Target on Redwood Trust to $13.75

Deutsche Bank maintains its Buy rating on Redwood Trust RWT as it expects growth in CRE investments, but cuts its price target $1 to $13.75 a share on Q4 miss driven by higher loan loss provision. Deutsche Bank says, "While 4Q results were below our estimates, Redwood ended the year with roughly $214 million in investment capacity and a strong balance sheet. We continue to expect Redwood to focus on originating new CRE debt investments, as growth opportunities in the residential market may be somewhat limited near-term. Given the capacity to make new CRE debt investments, the ability to grow the residential portfolio longer term, and the attractive valuation, we are maintaining our Buy rating." RWT closed at $11.70 a share yesterday.