Redwood Trust price target lowered to $8 from $9 at JMP Securities

JMP Securities analyst Trevor Cranston lowered the firm’s price target on Redwood Trust to $8 from $9 and keeps an Outperform rating on the shares ahead of the Q2 earnings report. The firm’s model implies the company could return to covering its dividend payout by the end of this year, with some degree of potential for a dividend hike sometime next year given the predicted strong EAD coverage ratio, the analyst tells investors in a research note.