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UPDATE: Deutsche Bank Initiates Buy, $21.75 PT on Western Asset Mortgage Capital on ROE Outlook

Related WMC
UPDATE: Compass Point Downgrades Western Asset Mortgage Capital to Neutral on Valuation
UPDATE: Deutsche Bank Reiterates Buy Rating, Lowers PT on Western Asset Mortgage Capital
Western Asset Mortgage Capital Corporation And My Bearish Interest Rate Assessment (Seeking Alpha)

Deutsche Bank initiates Western Asset Mortgage Capital (NYSE: WMC) with a Buy rating and a price target of $21.75.

Deutsche Bank comments, "We expect WMC to generate net ROEs of 14-15% given current spreads available in agency MBS, as the portfolio benefits from the investments in less prepayment-sensitive securities and the low financing cost environment. We believe WMC deployed the new capital quickly and has benefited from rate changes since the offering. We are initiating coverage with a Buy rating and a target of $21.75 per share, which is based on a 10% premium to book value."

WMC closed at $18.52 on Friday.

Latest Ratings for wmc

May 2015Deutsche BankMaintainsHold
May 2015Keefe Bruyette & WoodsMaintainsMarket Perform
Mar 2015Deutsche BankMaintainsHold

View More Analyst Ratings for wmc
View the Latest Analyst Ratings

Posted-In: Deutsche BankAnalyst Color Price Target Initiation Pre-Market Outlook Analyst Ratings


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