On Thursday, RBC Capital Markets adjusted its outlook on shares of Rithm Capital Corp. (NYSE:RITM), increasing the price target to $13.00 from the previous $12.00, while reiterating an Outperform rating on the stock. The firm's decision follows a review of the company's first-quarter performance.
The financial institution expressed anticipation for Rithm Capital's upcoming investor day on May 14, 2024. The event is expected to provide further details about the company's alternative asset management operations and potential growth avenues.
RBC Capital Markets highlighted Rithm Capital's strategic shift towards a more fee-based and capital-efficient business framework. The firm's analysis suggests a positive outlook on the company's transition to becoming an alternative investment manager.
The updated price target reflects a vote of confidence in Rithm Capital's business strategy and future prospects. RBC Capital Markets' stance remains favorable, with expectations that the company's pivot will drive value for shareholders.
InvestingPro Insights
As Rithm Capital Corp. (NYSE:RITM) prepares for its investor day, a glance at the real-time data from InvestingPro shows a company with a strong financial footing. With an adjusted market capitalization of $5.42 billion and a P/E ratio that stands at 7.23 for the last twelve months as of Q1 2024, Rithm Capital appears to be valued attractively in the market. The company has also demonstrated a robust gross profit margin of 100% in the same period, underscoring its efficiency in generating earnings.
InvestingPro Tips suggest that while analysts have revised their earnings downwards for the upcoming period, Rithm Capital has a history of maintaining dividend payments, with an impressive track record of 12 consecutive years. This consistency is reflected in the substantial dividend yield of 8.91%, as of the latest data. Additionally, the stock's volatility might be a point of consideration for investors, with the company's share price trading near its 52-week high at 97.93% of the peak value.
For those looking to delve deeper into Rithm Capital's performance and potential, there are several additional InvestingPro Tips available at https://www.investing.com/pro/RITM. Use the exclusive coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription for more in-depth analysis and data.
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