Wells Fargo Starts Redwood Trust (RWT) at Market Perform; Continue to Focus on Origination Platform and Opportunistic Acquisitions

Wells Fargo initiates coverage on Redwood Trust (NYSE: RWT) with a Market Perform. PT $12.50.

Wells analsyt says, "Our Market Perform rating is based on (1) RWT having a strong management team, (2) uncertainty of the private-label securitization market, and (3) discounted valuation relative to the mortgage REIT universe. We are establishing 2011 and 2012 EPS estimates of $0.60 and $1.04, respectively."

"We believe RWT shares are likely to trade closer to book value given our expectation that the company will continue to focus on its origination platform and opportunistically acquire new mortgage assets."

For an analyst ratings summary and ratings history on Redwood Trust click here. For more ratings news on Redwood Trust click here.

Shares of Redwood Trust closed at $10.59 yesterday.

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