UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on Western Asset Mortgage

In a report published Monday, Deutsche Bank reiterated its Buy rating on Western Asset Mortgage Capital Corp.

, and raised its price target from $22.25 to $25.00. Deutsche Bank noted, “Given our book value estimate of $21.85 per share, which is up from $20.17 per share at 6/30, and an increase to our BV premium to 15% from 10%, we are increasing our target to $25 per share. Since 2000, agency MBS managers have traded in a range of 50% to 250% of book value; however, the post-2008 range has narrowed to 75% to 130%. Our current multiple range for agency RMBS managers under coverage is 110-115%. Given current portfolio returns, we believe a 15% premium is appropriate.” Western Asset Mortgage Capital Corp. closed on Friday at $21.15.