UPDATE: Wunderlich Maintains Hold, Lowers PT to $16.50 on Invesco

Wunderlich Securities reiterates its Hold rating on Invesco Mortgage Capital IVR and lowers its target price to $16.50 from $17 per share as the company announced cuts to a dividend that has been stable so far. Wunderlich says, “Hold-rated Invesco Mortgage Capital (IVR) declared a dividend of $0.65 for 4Q11, well below the $0.97 paid for the final quarter of 2010. What has gone wrong with this story? We believe that the management at IVR has been a disciplined asset buyer, but that the financing and hedging of the portfolio was less successful because of a bias toward a steepening of the curve. The big question is whether funding costs and asset values have stabilized, which would stabilize the dividend.” IVR closed at $14.71 per share on Friday.