UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on American Capital Mortgage Investment
In a report published Monday, Deutsche Bank reiterated its Buy rating on American Capital Mortgage Investment (NASDAQ: MTGE), and raised its price target from $25.50 to $29.00.
Deutsche Bank noted, “EPS to benefit in '13 from higher mix of non-agency; slower agency prepays - We are reiterating our Buy post-3Q results (EPS 2c light; BV +14%), as MTGE's agency MBS portfolio is less sensitive to prepays given low loan balances and other characteristics. Additionally, the hybrid strategy enables them to redeploy prepay capital into non-agency MBS, which we believe offer more attractive returns today. Given we expect EPS to benefit in 2013 from a higher mix of non-agency MBS as well as slowing prepays on the agency assets, we are reiterating our Buy rating. We are increasing our target to $29 per share.”
American Capital Mortgage Investment closed on Friday at $25.40.
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