Jefferies Maintains a 'Buy' on Redwood Trust (RWT); Updating Estimates Post-1Q11 Report
Tweet
Share
E-mailGet Alerts RWT Hot Sheet
Price: $4.83 +2.11%
Rating Summary:
11 Buy, 8 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 4 | Down: 5 | New: 8
Rating Summary:
11 Buy, 8 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 4 | Down: 5 | New: 8
Join SI Premium – FREE
Jefferies maintains a 'Buy' on Redwood Trust (NYSE: RWT), PT lowered from $18 to $16.50.
Jefferies analyst says, "RWT reported 1Q'11 EPS of $0.22 in line with JEF estimates and $0.05 below the Street's $0.27. Book value increased to $0.13 per share QoQ to $13.76. RWT also increased their outlook for RMBS securitization activity, activity we expect will eventually drive the share price higher."
"Our $16.50/share price target represents 1.2x book value. This premium is relatively high vs historical levels and reflects our expectation that RWT will play an important role in the re-emergence of the mortgage securitization market. Risks include further housing market deterioration, and uncertainty stemming from legislative or regulatory changes." (Jefferies lowers FY11 EPS estimate from $0.95 to $0.91 and FY12 from $1.08 to $1.04)
For more ratings news on Redwood Trust click here and for the rating history of Redwood Trust click here.
Shares of Redwood Trust closed at $15.11 yesterday.
Jefferies analyst says, "RWT reported 1Q'11 EPS of $0.22 in line with JEF estimates and $0.05 below the Street's $0.27. Book value increased to $0.13 per share QoQ to $13.76. RWT also increased their outlook for RMBS securitization activity, activity we expect will eventually drive the share price higher."
"Our $16.50/share price target represents 1.2x book value. This premium is relatively high vs historical levels and reflects our expectation that RWT will play an important role in the re-emergence of the mortgage securitization market. Risks include further housing market deterioration, and uncertainty stemming from legislative or regulatory changes." (Jefferies lowers FY11 EPS estimate from $0.95 to $0.91 and FY12 from $1.08 to $1.04)
For more ratings news on Redwood Trust click here and for the rating history of Redwood Trust click here.
Shares of Redwood Trust closed at $15.11 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Jefferies Starts Faraday Copper Corp (FDY:CN) (CPPKF) at Buy
- UBS Upgrades Stockland (SGP:AU) (STKAF) to Buy
- UBS Upgrades SLC Agricola SA (SLCE3:BZ) (SLCJY) to Neutral
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Jefferies & CoSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
