Wunderlich Securities Increases PT on Redwood Trust to $15, Maintains Hold (RWT)

Wunderlich Securities increased its price target on Redwood Trust RWT to $15 in spite of worse than expected Q1 results. In a research report published today, Wunderlich reiterated its confidence in Redwood, prompting it to leave its rating unchanged at Hold. In the report, Wunderlich states, "Redwood Trust (RWT) reported 1Q11 EPS of $0.22, below our $0.28 estimate. We had anticipated more advantageous timing in the securitization than what materialized. We continue to believe that RWT has a real franchise in private-label mortgage securitizations, but it's going to take time before transaction volumes support consistent value creation. RWT is clearly keeping irons in the fire that could allow it to be among the first to gain market share once liquidity is restored to the housing finance market. We maintain our Hold rating, waiting on housing finance market reforms." In today's trading, Redwood lost 0.06% of its value and is currently trading at $15.44.