Citizens raised its price target on Rithm Capital Corp. (NYSE:RITM) to $13.50 from $12.50 while maintaining a Market Outperform rating. The stock currently trades at $9, suggesting significant upside potential.
The firm established co-coverage between its Mortgage Finance and Alternative Asset Management research teams. Rithm acquired Sculptor Capital Management in late 2023, marking a move into alternative asset management.
Later, the company became the external manager of publicly traded mortgage REIT Rithm Property Trust and acquired Crestline Management in late 2025. Rithm's asset management segment now has $59 billion in assets under management.
Mortgage origination and servicing remains the largest segment at roughly 45% of equity. Asset management is second at 18%, followed by commercial real estate at 18%, the investment portfolio at 12%, and the Genesis residential transition loan business at 7%. Notably, the company offers an exceptional 11.11% dividend yield and has paid dividends for 14 consecutive years.
Citizens said the co-coverage is appropriate given management's strategic focus on asset management. Rithm Capital recently reported Q1 2026 earnings that surpassed expectations, with EPS of $0.51 versus $0.50 forecast, and revenue of $1.38 billion against $1.25 billion expected.
