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

JMP Securities lowered the firm’s price target on Redwood Trust to $8 from $9 and keeps an Outperform rating on the shares. Redwood’s Q4 results were marked by lower-than-expected earnings available for distribution, a marginal decline in book value, and a seasonal sequential decline in residential consumer mortgage banking lock volume and residential investor mortgage banking funding volume, the analyst tells investors in a research note. JMP continues to believe Redwood is uniquely positioned to capitalize in the evolving mortgage lending landscape by participating in potential future mortgage asset sales from banks, in both bulk and flow formats.