UPDATE: KBW Lowers PT on Redwood Trust to $17 (RWT)

KBW is out with its report today on Redwood Trust RWT, lowering its PT to $17. In a note to clients, KBW writes, "We are reducing our price target for Redwood to $17. This equates to a target price/book multiple of 1.17x our mark-to-market book value estimate of $14.50. This is consistent with the target multiples we use for most of our mortgage REITs. While we believe that the shares remain cheap, Redwood's earnings are unlikely to increase meaningfully until GSE conforming mortgage limits decline." Shares of RWT closed Friday at $15.17, down 1.24% from Thursday's close.