
RITM Stock Forecast & Price Target
RITM Analyst Ratings
Bulls say
Rithm Capital Corp's book value per share (BVPS) experienced a notable increase of 203 basis points quarter-over-quarter, rising to $12.56, primarily driven by higher than expected pretax income and a significant decline in mortgage servicing rights (MSR) marks. The company's MSR portfolio also showed robust growth, increasing by 268 basis points quarter-over-quarter, with fair value gains leading to a total MSR held value of $10.3 billion, up from $9.3 billion in the previous quarter. Additionally, Rithm Capital is projecting upward revisions to its operating earnings per share for both 2025 and 2026, attributed to increased management and performance fees as well as anticipated growth in the asset management segment in a potentially lower interest rate environment.
Bears say
Rithm Capital's stock faces a negative outlook primarily due to the potential adverse effects of fluctuating interest rates and elevated prepayment activity, which can compress net interest margins and diminish the value of mortgage servicing rights (MSRs). Additionally, periods of illiquidity in the mortgage markets may hinder secured borrowing arrangements, while changes in Federal Reserve policy regarding agency mortgage-backed securities (MBS) could lead to increased market volatility and reduced asset quality. The company's overall earnings power and dividend-paying capability may further decline as higher short-term interest rates increase funding costs and accelerate the amortization of assets, negatively impacting returns to common shareholders.
This aggregate rating is based on analysts' research of Rithm Capital Corp and is not a guaranteed prediction by Public.com or investment advice.
RITM Analyst Forecast & Price Prediction
Start investing in RITM
Order type
Buy in
Order amount
Est. shares
0 shares