
Redwood Trust (RWT) Stock Forecast & Price Target
Redwood Trust (RWT) Analyst Ratings
Bulls say
Redwood Trust is on track for strong growth and return on equity, as seen by its third consecutive record mortgage banking quarter and solid proof of its scalable operating model in a weak origination market. The company also maintains a strong portfolio, with a significant increase in residential consumer balances and a consistent dividend payout. There are risks, such as funding risk and operational risk, but these are well managed by the company through its diverse financing sources and strong risk management framework. Overall, I believe Redwood Trust is a sound investment option for those looking for exposure in the U.S. housing credit market.
Bears say
Redwood Trust is facing significant headwinds due to its legacy portfolio, which currently accounts for 15% of the company's capital and is expected to continue to drag on GAAP results. This, along with potential dilution from additional equity offerings and regulatory changes, could lead to lower earnings generation and put book value at risk. Additionally, the company's reliance on debt financing and potential funding risks could hinder its ability to grow and generate returns for shareholders. These factors contribute to our negative outlook on Redwood Trust's stock.
This aggregate rating is based on analysts' research of Redwood Trust and is not a guaranteed prediction by Public.com or investment advice.
Redwood Trust (RWT) Analyst Forecast & Price Prediction
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