UPDATE: Stifel Nicolaus Raises PT to $22 on Invesco Mortgage Capital on Dividend Sustainability
Stifel Nicolaus reiterated its Buy rating on Invesco Mortgage Capital (NYSE: IVR) and raised its price target from $20 to $22.
Stifel Nicolaus noted, "Strong book value gains, diverse asset mix, a 12.3% yield, and priced at 1.01x book value all contribute appeal to IVR stock in our view. Still, compressed interest spreads and the uncertainty of QE3 impacts seem likely to hang over the group for some time to come, limiting further valuation upside and potentially stressing the dividend. We like the stock and the sector, but maintain heightened caution amidst usual uncertainty."
Invesco Mortgage Capital closed at $21.20 on Monday.
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