Piper Sandler analyst Kevin Barker lowered the firm’s price target on Redwood Trust to $7.00 from $8.50 and keeps an Overweight rating on the shares. Headwinds within the secondary mortgage market have pressured the mortgage banking pipeline for both residential lending and business purpose loans, ultimately causing Redwood Trust to project a 20%-30% dividend cut in Q2, the analyst tells investors in a research note. The firm believes the risk-reward is skewed to the upside.
Published first on TheFly
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