Redwood Trust price target lowered to $7 from $8 at Wells Fargo

Wells Fargo lowered the firm’s price target on Redwood Trust to $7 from $8 and keeps an Equal Weight rating on the shares. The residential mortgage market remains challenging, but Redwood is taking market share as the second half of 2023 locked loans represent 5% of the jumbo market up from 2%-3% historically, the firm says. Wells also notes Redwood has a large pool of excess liquidity that can be deployed when market conditions improve.