BTIG stays Neutral on Two Harbors as it waits for sweeter UWM Holdings offer

BTIG keeps a Neutral rating on Two Harbors (TWO), noting that it is “unclear” if UWM Holdings (UWMC) will raise its offer above its current unsolicited all-cash offer for $10.70 per share. The firm estimates that Two Harbors’ current net asset value is between $10.50-$11.00, and sees limited upside as it believes there is “low motivation and rationale to engage a bidding war”, but sees “10%-15% downside if the offer from the stalking horse doesn’t materialize.”