UPDATE: Deutsche Bank Raises PT on Redwood Trust to $21.50 (RWT)

Deutsche Bank is out with its report on Redwood Trust RWT, raising its PT from $20 to $21.50. In a note to clients, Deutsche Bank writes, "While Redwood's 4Q core earnings were below our estimates due to higher-thanexpected loan loss provisions, we expect attractive returns on new investments and lower loan loss provisions to result in core earnings growth in 2011. Additionally, we expect Redwood to benefit from eventual GSE reform, as this should result in a larger supply of jumbo loans. We are maintaining our Buy rating and increasing our price target from $20 to $21.50 per share." Shares of RWT closed Wednesday at $16.07.