UPDATE: Deutsche Bank Initiates Javelin Mortgage Investment on Dividend Outlook
Deutsche Bank initiated coverage on Javelin Mortgage Investment (NYSE: JMI) with a Buy rating and a $22 price target.
Deutsche Bank noted, "We expect JMI to deploy its IPO proceeds quickly, with the majority of the capital initially invested in agency MBS. We expect ROEs to increase in 2013 from a higher mix of non-agency assets and slightly wider spreads on agency assets. 4Q catalysts include the announcement of the first three (or more) monthly dividends and the release of the initial portfolio details. Given our portfolio return estimates, expectation of expanding ROEs in 2013, and with shares trading at a discount to post-deal BVPS, we are initiating with a Buy rating. Our target of $22 is based on shares trading at a 10% premium to BV."
Javelin Mortgage Investment closed at $19.57 on Friday.
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