
RITM Stock Forecast & Price Target
RITM Analyst Ratings
Bulls say
Rithm Capital Corp has demonstrated a strong financial performance, with a sequential increase in book value per share (BVPS) of 203 basis points to $12.56, driven by higher-than-expected pretax income and a notable decline in mortgage servicing rights (MSR) marks. The company's MSR portfolio expanded significantly, with a total full MSR unpaid principal balance (UPB) rising to $590 billion, supported by fair value gains that resulted in a valuation boost of MSR holdings to $10.3 billion, representing an 11% increase quarter-over-quarter. Additionally, the positive outlook is bolstered by increases in projected operating earnings per share (EPS) for 2025 and 2026, indicating anticipated growth in management fees and asset management revenues, along with potential benefits from a favorable interest rate environment.
Bears say
The analysis of Rithm Capital Corp reveals several fundamental concerns that contribute to a negative outlook on the company's stock. Elevated prepayment activity and potential increases in agency MBS purchases by the Federal Reserve may lead to lower reinvestment yields and compress net interest margins, adversely impacting earnings and dividend capabilities. Additionally, fluctuations in interest rates, coupled with changes in liquidity conditions and asset quality, pose risks that could further diminish the overall earnings power and financial stability of the company.
This aggregate rating is based on analysts' research of Rithm Capital Corp and is not a guaranteed prediction by Public.com or investment advice.
RITM Analyst Forecast & Price Prediction
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