UPDATE: Jefferies Lowers PT on Redwood Trust to $16.50 (RWT)

Jefferies is out with its report today on Redwood Trust RWT, lowering its PT from $18 to $16.50. In a note to clients, Jefferies writes, "Our $16.50/share price target represents 1.2x book value. This premium is relatively high vs historical levels and reflects our expectation that RWT will play an important role in the re-emergence of the mortgage securitization market." Jefferies maintains Buy on RWT. Shares of RWT closed Tuesday at $15.11, down 0.53% from Monday's close.