Bank Of America Reiterates Buy On CIM

Bank of America is reiterating its Buy rating and maintaining its $4.25 price target on Chimera Investment Corp.

in spite of recent fears. In the report, Bank of America writes, “Weak economic data, specifically in housing assets, and some bearish market commentary from non-traditional sources has served to undermine investor sentiment in Chimera Investment this week, prompting a 9% decline in the stock. Concerns that housing is re-entering a recessionary phase is not surprisingly weighing on economically sensitive stocks like CIM. Also, there is speculation that CIM is at-risk of a dividend cut, due to higher credit losses and a rotation into agency MBS. Given an expected dividend announcement in the next couple of weeks, CIM is reacting acutely to renewed fears. We think the market is over- reacting and re-iterate our Buy rating on the shares.” CIM closed at $3.44 yesterday.