Trump to impose 100% tariff on China starting November 1
Investing.com - Piper Sandler has reiterated an Overweight rating and $15.00 price target on Rithm Capital Corp. (NYSE:RITM), highlighting the company’s attractive position in an improving mortgage market.
The research firm noted that Rithm Capital offers unique diversification compared to peers across origination, servicing, investment portfolio, and its growing asset manager platform. Despite operating in a challenging mortgage market, the company has generated mid-to-high teens ROEs.
Piper Sandler emphasized that Rithm’s valuation appears undervalued, trading at approximately 5x earnings and a slight discount to tangible book value. The firm suggested that Rithm’s returns could see further upside given the recent rate rally.
The research note also mentioned PennyMac Financial Services (NYSE:PFSI) as another attractive opportunity in the mortgage space, trading at around 8x earnings. Piper Sandler expects PFSI to benefit in the third and fourth quarters from recent rate movements.
The firm anticipates PFSI’s hedging to improve in the third quarter of 2025, addressing an issue that has been a performance drag for several quarters.
In other recent news, PennyMac Financial Services has been actively engaging with investors and analysts. The company presented an investor update at the Barclays Global Financial Services Conference, making the update available on its investor relations website. Additionally, Piper Sandler reiterated an Overweight rating on PennyMac Financial, highlighting potential benefits from recent mortgage rate movements. Keefe, Bruyette & Woods increased their price target for PennyMac from $117 to $121, maintaining an Outperform rating due to a more constructive outlook and increased earnings estimates. Furthermore, Wells Fargo assumed coverage with an Overweight rating and a price target of $115, emphasizing PennyMac’s strong franchise and growth opportunities. These developments reflect a positive sentiment among analysts regarding PennyMac’s financial prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.