UPDATE: Wunderlich Securities Raises PT to $12 on Two Harbors Investment

Wunderlich Securities reiterated its Hold rating on Two Harbors Investment

and raised its price target from $11 to $12. Wunderlich Securities said, "Despite the fact that Two Harbors (TWO) recently trimmed its annual dividend from $1.60 to $1.44, we are raising our price target. In a market starved for yield the positively sloped curve and accommodative FOMC policy should continue to allow for value creation. While pressures on dividends could continue, we project that the current indicated dividend might be sustained in 2013, which could support the stock at a 14% premium to forward estimated book value per share, or $12." Two Harbors Investment closed at $11.90 on Friday.