Market Overview

Bank of America Maintains Neutral, $16 Target on Invesco

Bank of America reiterates its Neutral rating and $16 target price on Invesco Mortgage Capital (NYSE: IVR) as it sees the buybacks as protecting company book value at the expense of earnings.

BofA says, “IVR rose 2.1% after it announced the Board authorized a 7M share buyback and that BV was roughly unchanged quarter to date, recouping some of the 8% loss witnessed from December 8th when IVR reduced it dividend to $0.65 per quarter. IVR would likely rather invest capital than buy back stock, in our view, suggesting the buyback plan is more of a market signal than a real threat. Still, the specter of buybacks likely encouraged some short-covering, helping today's rally.”

IVR closed at $14.80 per share on Tuesday.

Posted-In: Bank of AmericaAnalyst Color News Reiteration Buybacks Analyst Ratings

 

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