UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on ARMOUR Residential REIT

In a report published Monday, Deutsche Bank reiterated its Buy rating on ARMOUR Residential REIT ARR, and slightly raised its price target from $8.00 to $8.50. Deutsche Bank noted, “3Q BV increases 10%; Maintain estimates; Increasing target to $8.50 - While 3Q core EPS was a little below our estimate due to lower leverage, spreads were wider than we expected and BV increased over 10% to $7.77 per share. While prepays are likely to remain elevated near-term, we expect earnings to benefit from slowing prepays in 2013. With shares trading at a roughly 8% discount to 9/30 BV and given our portfolio return estimates, we are reiterating our Buy rating. We are increasing our target to $8.50 per share.” ARMOUR Residential REIT closed on Friday at $7.14.