Wunderlich Securities Maintains Buy Rating On Two Harbors Investment
According to Wunderlich Securities, Two Harbors Investment (NYSE: TWO) priced a 20 million share offering at $10.40/share on May 25, 2011.
Wunderlich Securities said that, "We calculate this offering will be slightly accretive to book value per share, raising that metric to approximately $9.96. The company plans to utilize the proceeds, in part, to supporting its private label whole loan securitization program, which we believe could allow the company to brand a series of RMBS and profitably intermediate in the secondary market for housing finance. We are lowering our estimates to reflect the return potential of capital allocated to this initiative, though we maintain our Buy rating and price target of $11.50/share."
Two Harbors closed yesterday at $10.79.
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