UPDATE: Deutsche Bank Raises PT to $8.50 on MFA Financial on Dividend Upside
Deutsche Bank reiterated its Buy rating on MFA Financial (NYSE: MFA) and raised its price target from $8.25 to $8.75.
Deutsche Bank noted, "MFA's 3Q dividend decreased sequentially from 23c but was above our 19c estimate. We believe the upside to our estimate was likely a result of spreads narrowing less than we anticipated. The dividend is payable on October 31, to shareholders of record on October 12. Declining mortgage rates or increases in prepayment speeds could impair MFA's net interest spread through increased expenses. Rising short-term interest rates may result in higher-than-expected funding costs and reduced earnings. Lower-than-expected leverage could result in earnings below our forecast."
MFA Financial closed at $8.50 on Friday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.