UPDATE: Jefferies Lowering Price Targets On Redwood Trust

Jefferies & Co. is out with a research report on Redwood Trust RWT and is lowering its price target to $15 from $16.50, and it has a Buy rating on shares. In a note to clients, Jefferies & Co. writes, "RWT reported 2Q11 GAAP EPS of $0.11, well below the Street estimate of $0.25 and $0.11 off from our estimate of $0.22. Excluding portfolio and derivative valuation changes, diluted EPS was $0.19. Book value decreased 6% Q/Q from $13.76 in 1Q to $13.04 in 2Q." Shares of RWT lost 63 cents yesterday to close at $13.57.