UPDATE: Sterne Agee Downgrades CYS Investments to Underperform
Sterne Agee is out with its report today on CYS Investments (NYSE: CYS), downgrading CYS from Neutral to Underperform.
In its report, Sterne Agee writes, "We are reducing our rating on CYS Investments from Neutral to Underperform on a combination of what we see as increased prepayment risk and a possible further reduction in the dividend on lower cash operating earnings. Yield spread is likely to continue to fall in the face of faster prepayments. Our price target of $11.50 is based on an 88% price to book multiple, in line with other agency peers, adjusted for the increased prepayment exposure."
At the time of posting, shares of CYS were trading at $12.38, down 0.40% from Thursday's close.
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