UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on Redwood Trust on Strong 4Q Results

In a report published Friday, Deutsche Bank reiterated its Buy rating on Redwood Trust RWT, and raised its price target from $20.50 to $25.50. Deutsche Bank noted, “Increasing estimates and target; Reiterate Buy. Redwood reported strong 4Q results with core EPS easily beating our estimate on strong mortgage banking activities. We are increasing our 2013 estimates to reflect accelerating volumes in the residential business and continued growth in the commercial business. Should gain on sale margins remain at 2H12 levels, we believe our estimates are likely to prove conservative. We are increasing our target to $25.50 per share, and we are reiterating our Buy rating given the strong business trends.” Redwood Trust closed on Thursday at $20.21.