UPDATE: Sterne Agee Upgrades Anworth Mortgage Asset Corp to Buy on Relative Valuation
Sterne Agee upgraded its rating on Anworth Mortgage Asset Corp (NYSE: ANH) from Neutral to Buy with a price target of $7.20.
Sterne Agee commented, "We are upgrading the shares of Anworth Mortgage from NEUTRAL to BUY and establishing a $7.20 price target. Our change in rating is based in most part on our expectation that the shares should trade much closer to net asset value and that the company will be able to maintain (already reduced) dividends at their current level of $0.18. Accordingly, our $7.20 price target is based on 1x 6/30/12 book value, which we believe has increased to date on hybrid RMBS appreciation."
Anworth Mortgage Asset Corp closed at $6.63 on Wednesday.
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