UPDATE: Deutsche Bank Increases PT to $25.25 on American Mortgage Capital Post Capital Raise
Deutsche Bank reiterates its Buy rating on American Mortgage Capital (NASDAQ: MTGE) and raises its price target from $24 to $25.25.
Deutsche Bank says, "In late May, MTGE raised gross proceeds of roughly $290 million through a secondary offering, with proceeds being used to grow its MBS portfolio. Given the offering and estimated asset marks since March 31, we estimate pro forma book value is just above $22 per share. Our 2012 and 2013 core earnings estimates remain basically unchanged. Given our new book value estimate and an increase in our book value multiple to 115% from 110%, we are increasing our target to $25.25 per share from $24 per share."
MTGE closed at $23.42 on Friday.
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