Jefferies Reiterates Buy Rating on Chimera Investment Corp. (CIM)
Jefferies is out with a research report this morning, where it reiterates its Buy rating on Chimera Investment Corp. (NYSE: CIM); it has a $4.25 price target on the stock.
The Jefferies analysts said that their overall take on July credit performance is positive, noting that typical seasonal patterns in July are for upward pressure on delinquency rates. However, three of the four delinquency metrics Jefferies tracks improved in July. This includes the first instance of improving month over month 90-day delinquencies since the credit crisis began, and continued declines in the total delinquency rate.
The analysts also updated estimates, noting, “Our 2010 EPS estimate moves from $0.73 to $0.70 while our 2011 estimate moves from $0.77 to $0.76. The main driver of our estimate revision was our expectation for a higher Agency portfolio and a lower senior non-Agency portfolio than we had previously modeled. We note that this is our first estimate update post 2Q10 earnings.”
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