
Redwood Trust (RWT) Stock Forecast & Price Target
Redwood Trust (RWT) Analyst Ratings
Bulls say
Redwood Trust is a strong buy due to its diverse mix of housing credit investments, record mortgage banking volume, and increasing joint ventures and partnerships. Additionally, Redwood Trust's operating model is successfully scaling even in a weak origination market, achieving a 19.1% EAD ROE in its core segments. Its solid operating results and record production demonstrate the company's potential for growth and potential to outperform the market.
Bears say
Redwood Trust is currently facing numerous fundamental risks, including legacy credit performance, which is currently the main headwind on sentiment for the company as management has emphasized reducing the legacy portfolio through successful dispositions. Additionally, there is leverage risk, as market dislocation or volatility could force the company to liquidate assets at unattractive prices and impair book values. Operational risk is also a concern due to the importance of maintaining a robust risk management framework, and there is potential for dilution of shareholder ownership if the company issues additional equity or preferred stock. Legislative or regulatory changes could also impact the company's ability to qualify as a REIT and result in adverse tax consequences. Overall, 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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