UPDATE: Jefferies & Company Reiterates Buy Rating, Raises PT on Redwood Trust
In a report published Wednesday, Jefferies & Company reiterated its Buy rating on Redwood Trust (NYSE: RWT), and raised its price target from $14.50 to $16.50.
Jefferies noted, “We see the combined effects of BASEL III, Dodd-Frank, and GSE reform as attempting to shift mortgage risk away from taxpayers towards private capital. As the only player with consistent post-crisis new issuance history, we view RWT as a primary beneficiary of these efforts. This research piece outlines RWT's evolving business model and how we foresee RWT benefiting from residential mortgage reform.”
Redwood Trust closed on Tuesday at $15.20.
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Tags: Jefferies & Company