UPDATE: Jefferies Initiates Buy, $21 PT on Western Asset Mortgage Capital; Trading Below Book
Citigroup initiates its coverage on Western Asset Mortgage Capital (NYSE: WMC) with a Buy rating and a price target of $21.
Citigroup comments, "We are initiating coverage of Western Asset Mortgage Capital Corp (WMC) with a Buy / High Risk rating and $21 price target. WMC completed their IPO on May 9, 2012, and will invest primarily in agency MBS, which benefits from the low short-term rate environment and has minimal credit risk (implicit U.S. government guarantee). The REIT is externally managed by Western Asset Mgmt, a large / well regarded fixed income manager (owned by Legg Mason)."
WMC closed at $18.50 on Friday.
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