RITM: Piper Sandler's Lowered Target Amid 30-Year Rate Crisis

Rithm Capital Corp. (NYSE: RITM) is seen as one of the top REITs poised for a rotation rally. Piper Sandler reduced its price target to $12.50 from $14, citing the persistent 6.50% level of 30-year mortgage rates. Analysts note this rate is suppressing credit demand, particularly for mortgage originators like RITM. Piper Sandler expects limited positive news from originators in Q3, trimming its target while maintaining an Overweight rating. RITM is navigating a challenging period amid the 30-year rate crisis. The company announced a steady $0.25 common stock dividend for Q2 2026, showcasing its stability. Its REIT structure ensures 90%+ of taxable income is distributed to shareholders. How markets will react to this situation? RITM's performance in this crisis remains a key focus.