UPDATE: Compass Point Downgrades American Capital Mortgage to Hold on Outlook

Compass Point reduced its rating on American Capital Mortgage (NASDAQ: MTGE) from Buy to Neutral on a more balanced outlook, but raised its price target from $20 to $23.

Compass Point said, "While MTGE's current valuation is not approaching secular peak valuations reached by other mREITs in prior cycles, we believe that given current headwinds facing Agency mREITs a more cautious approach is necessary. We see no near term risk to the dividend and current shareholders are being paid a handsome yield (14.5%) to own the shares in the current environment."

American Capital Mortgage closed at $24.81 on Monday.

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