UPDATE: Sterne Agee Upgrades Hatteras Financial to Buy

Sterne Agee is out with its report today on Hatteras Financial HTS, upgrading HTS from Neutral to Buy. In its report, Sterne Agee writes, "We are upgrading Hatteras Financial Corp from NEUTRAL to BUY and establishing a price target of $26.00. In our view the shares have seen greater pressure relative to other Agency REITs due to perceived prepayment risk which seems overstated in context with current reported CPRs and the portfolio's allocation." At the time of posting, shares of HTS were trading at $25.10, up 1.29% from Thursday's close.