Wunderlich Initiates Coverage of Cypress Sharpridge Investments (CYS)

Wunderlich Securities initiated coverage of Cypress Sharpridge Investments (NYSE: CYS) with a Buy rating today. Wunderlich notes that it believes "ROEs in the 19% to 20% range over the next six quarters will support price appreciation, while we look for most of the available total return to shareholders to come in the form of quarterly cash dividends."

Wunderlich describes Cypress as an "externally managed REIT with a small legacy portfolio of commercial collateralized debt obligations and an incremental equity allocation that is 100% dedicated to the agency mortgage-backed securites (MBS) market. "

Shares of Cypress gained over 1% in trade today. Wunderlich initiates with a $15.75 price target.