UPDATE: Deutsche Bank Initiates Coverage on New York Mortgage Trust with Buy Rating, $7.25 PT

In a report published Friday, Deutsche Bank initiated coverage on New York Mortgage Trust

with a Buy rating and $7.25 price target. Deutsche Bank noted, “In October, NYMT raised just over $100 million through a secondary offering, which we expect to fund new investments into agency MBS, multi-family CMBS, and/or pools of distressed residential first lien mortgages. We expect the new investments to drive ROE expansion in 2013. Given this and with shares trading below our post-deal book value estimate, we are initiating coverage with a Buy rating. Our target of $7.25 per share is based on shares trading at a 10% premium to our BV estimate.” New York Mortgage Trust closed on Thursday at $6.32.