UPDATE: Wunderlich Securities Raises PT to $20 on Redwood Trust on Book Value Appreciation

Wunderlich Securities reiterated its Buy rating on Redwood Trust RWT and increased its price target from $15 to $20. Wunderlich Securities commented, "Our price target of $20 per share assumes that RWT shares trade at a 35% premium to estimated year end 2013 book value of $13.85 per share. The increase in book value reflects earnings retained above the $1.28 indicated dividend, plus modest accretion from the issuance of common shares through the DSPP. Our Buy rating reflects our opinion that the shares of RWT will outperform those of other mortgage REITs, as well as many other companies engaged in housing finance, as housing finance reform grinds inexorably forward." Redwood Trust closed at $16.72 on Friday.