Rithm Capital upgraded to Overweight from Neutral at Piper Sandler

Piper Sandler upgraded Rithm Capital (RITM) to Overweight from Neutral with a price target of $14, up from $12.50. The company reported solid operating results in Q1, the analyst tells investors in a research note. The firm says the shares are “overly discounted,” noting the Q1 beat was driven by servicing fee income and Rithm generated a 17% core return on equity. There is a “disconnect” from these return levels and the stock trading at a discount to book value and only five-times estimated 2026 earnings, the analyst tells investors in a research note.