
RITM Stock Forecast & Price Target
RITM Analyst Ratings
Bulls say
Rithm Capital Corp has demonstrated significant financial growth, with a sequential increase in book value per share (BVPS) to $12.56, attributed to higher-than-expected pretax income and an 11% decline in mortgage servicing rights (MSR) marks. The company's MSR portfolio expanded by 268 basis points quarter-over-quarter, reaching a total full MSR unpaid principal balance (UPB) of $590 billion and a fair value of $10.3 billion, indicating robust growth in third-party servicing operations. Additionally, projections for operating earnings per share (EPS) have been revised upward for 2025 and 2026, reflecting increased management fees and revenue from asset management, suggesting a solid foundation for future profitability.
Bears say
Rithm Capital Corp faces significant headwinds due to potential increases in mortgage prepayment activity, which could compress net interest margins and lower the valuation of mortgage servicing rights (MSRs), ultimately impacting the company's earnings. Additionally, fluctuations in interest rates may lead to higher funding costs that would negatively affect the overall earnings power and dividend-paying capability. The company's exposure to market volatility and liquidity risks, particularly in the mortgage markets, poses further challenges to maintaining asset quality and return on equity, contributing to a negative outlook.
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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