
Redwood Trust (RWT) Stock Forecast & Price Target
Redwood Trust (RWT) Analyst Ratings
Bulls say
Redwood Trust Inc. is positioned for growth, as indicated by an optimistic outlook stemming from anticipated lower interest rates, favorable regulatory trends, and its prominent role in residential consumer and investor lending, which is expected to provide a robust tailwind into FY26. The company's mortgage banking income remains strong, underscored by impressive demand evidenced by $3.4 billion in whole loan sales, contributing to a stable 12% dividend and potential mark-to-market appreciation if market conditions improve. Additionally, earnings are projected to benefit from possible interest rate cuts by the Federal Reserve, which could also enhance the valuation landscape for the stock if growth catalysts in the non-Agency mortgage market emerge.
Bears say
Redwood Trust Inc. faces a challenging financial outlook primarily due to persistently high financing costs that are expected to outpace those of its peers, leading to lower returns for shareholders. The company's recent performance reveals a significant decline in the average size of bridge loans funded, coupled with lower-than-expected mortgage banking income, which further exacerbates its operational difficulties amidst rising interest rates. Additionally, the management's risk regarding execution and personnel could adversely affect return on equity and jeopardize the company's book value, evidenced by a decline in book value from $7.49 to $7.35 quarter over quarter.
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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