JPMorgan analyst Richard Shane raised the firm’s price target on Redwood Trust to $8 from $7.50 and keeps an Overweight rating on the shares as part of a Q3 earnings preview. The firm expects residential mortgage real estate investment trusts to be the earliest beneficiaries of lower interest rates. Residential mortgage REITs are levered to falling rates via a positive duration gap, which should be immediately accretive to book value, the analyst tells investors in a research note.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on RWT:
- Redwood Trust management to meet with JMP Securities
- Seeking up to 10% Dividend Yield? Analysts Suggest 2 Dividend Stocks to Buy
- Redwood Trust price target raised to $9 from $8.50 at JMP Securities
- Redwood Trust price target raised to $8.50 from $7.50 at Wells Fargo
- Redwood Trust price target raised to $9.50 from $8.50 at Raymond James