Keefe Bruyette highlights Rithm Capital as ‘Holiday Opportunity’

Keefe Bruyette highlights Outperform-rated Rithm Capital (RITM) as a “Holiday Opportunity” both on valuation and on the potential for a listing of Newrez, their wholly owned mortgage originator/servicer, in 2025, which could be a catalyst for a re-rating of the shares. The shares remain cheap on a price-to-book value ratio, price to tangible book value, and the firm’s theoretical sum-of-the-parts basis. Keefe Bruyette maintains its $13.50 price target on the shares, which equates to 1.1-times book value with an estimated 30% return potential.